On-chain capitulation signals show pessimistic sentiment in the crypto market or an approach to an extreme level. According to a MEXC August 20 daily report citing VanEck research, among the 12 indicators used to gauge whether Bitcoin has bottomed out, 8 have already triggered “extreme pessimism.” Historically, such multi-indicator convergence often appears in the zone of a short-term bottom, reflecting that leverage and retail sell pressure have been fully released. With this signal also coinciding with a recent rebound in risk appetite, some analysts view it as a reference for a pullback nearing its end. However, the regulatory framework is still in the proposal and legislative wrangling stage; what happens next still depends on the implementation of the rules and the persistence of liquidity conditions. $BTC $ETH is for informational purposes only and does not constitute investment advice