Bitcoin
Bitcoin and Ethereum Investors Suffer as Bearish Sentiment Takes Over
- Bearish sentiment across the crypto sector was rising.
- Bitcoin and Ethereum have witnessed a decline in profitable and short-term holders.
Analysis of Santiment data by AMBCrypto revealed that bearish sentiment in the cryptocurrency sector was increasing.
Bears jump forward
According to the data, there has been a drastic drop in optimistic sentiment on online forums such as X, Reddit, Telegram, 4Chan, and BitcoinTalk.
Traders have seemingly lost faith in the markets, with bullish forecasts dropping significantly. Interestingly, bearish options also declined, but at a much slower pace.
Fearful investors who were once optimistic may now be more likely to sell their holdings, pushing stock prices lower. Bitcoin [BTC] It is Ethereum [ETH] in the short term. This could trigger a domino effect as others panic sell, further increasing the decline.
However, the significant drop in bullish forecasts could also indicate a capitulation event, where investors have exhausted their hopes and are forced to sell.
Selling pressure may eventually ease, leading to a period of consolidation and potentially a market bottom for BTC and ETH.
Source: X
A Tale of Two Keepers
At press time, BTC was trading at $61,361.69 and its price fell by 0.67% in the last 24 hours.
During this period, the MVRV rate for BTC dropped significantly. A drop in the MVRV rate implied that along with the price, the profitability of most holders had also decreased.
Along with this, BTC’s Long/Short difference also fell. A declining Long/Short ratio indicated that the number of long-term holders had declined compared to the number of short-term holders that were flooding the market.
These short-term holders are unreliable and can be significantly influenced by market fluctuations. If volatility persists, there could be more downward pressure on BTC in the long run.
Source: Santiment
Along with BTC, ETH could also face significant selling pressure. This is due to the fact that Ethereum and Bitcoin are strongly correlated. Data from IntotheBlock revealed that the correlation between these two tokens was 0.86 at the time of writing.
To read Ethereum (ETH) Price Prediction 2024-25
In terms of price, ETH was trading at $3,432.61 and in the last 24 hours it had grown by 1.37%.
The MVRV ratio and Long/Short difference for ETH have also decreased, implying a decisive number of profitable addresses and short-term holders.
Source; Sanction