Bitcoin
Santiment Analyst Says Bitcoin’s Health Remains a Crucial Factor for Altcoin Rally
Brian from Santiment recently appeared on Thinking about the latest episode of Cryptowhere he shared his views on the altcoin rally. Brian talked about the top 50 meme coins by market cap and said that Dogecoin appears to be dead, while Shiba Inu has shown little change in the last 30 days. Some of the biggest gainers include MAGA (up 178%), Pepe (up 70%), and Floki (up 73%).
Brian confirmed that changes in social volume and prices are critical indicators. While most coins have seen price increases, some have declined. Social volume is particularly important for speculative sectors like meme coins. Mentions of Dogecoin have decreased, while Pepe is being discussed more than twice as frequently as last month, which could lead to greater volatility.
The host then said that Bitcoin is again seeing a rise in ETF flows, with interest from big players like BlackRock and Fidelity. Bitcoin is trying to climb to reach a new all-time high, although it is currently pulling back a bit.
Reacting to the same, Brian said that regardless of whether you are trading meme coins, AI or any other sector, the health of Bitcoin is crucial. If Bitcoin collapses, other currencies will likely follow suit. On the other hand, if Bitcoin reaches a new all-time high and advances towards $80,000, other altcoins will also benefit.
An important metric for Bitcoin is the activity of whale wallets, especially those holding 10 to 10,000 BTC, which account for about two-thirds of the supply. These wallets can indicate the direction of Bitcoin’s price. However, the recent consolidation of portfolios related to the Mt. Gox administrator has skewed this data. Now, looking at wallets with 10 or more BTC, there is a clearer picture: as these wallets accumulate, the price tends to rise, and as they are distributed, the price tends to become more volatile.
Since the end of 2023, the accumulation of BTC by these large wallets has been constant, leading to price increases. However, since the end of May, there has been a slight decrease in accumulation, causing some concern. Looking at the last four years, a similar decline was observed starting in February 2022, which preceded a challenging year for crypto due to rising interest rates and other factors. Despite these fluctuations, since the beginning of 2023, accumulation has resumed, leading to a fourfold increase in Bitcoin Pricewhich is significant.
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