Crowd Sentiment Towards Bitcoin Hit Historic Lows as BTC Addresses in Profit Reach a Monthly Low

Bitcoin (BTC) recently topped the $52K level, but this was short-lived because the top cryptocurrency experienced a significant pullback that prompted a $10K loss as over-leverage factors came into play. 

Santiment acknowledged this, together with fear, doubt, and uncertainty (FUD), which have made crowd sentiment towards BTC sink to historic lows. The on-chain metrics provider explained:

“Crowd FUD has hit historic levels toward Bitcoin, according to our algorithm measuring commentary volume, combined with positive vs. negative BTC scores. Severe negativity has historically led to inevitable price bounces after weak hands drop out.”

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Nevertheless, Santiment noted that the high negativity witnessed in the Bitcoin market could prompt a price surge based on eliminating weak hands. These are investors who indulge in an asset for speculative other than future purposes.

BTC addresses’ profitability sinks

According to crypto analytic firm Glassnode, the number of Bitcoin addresses in profit reached a 1-month low of 31,328,534.161.

 

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On the other hand, Bitcoin futures perpetual funding rate recently turned negative, which indicated a tendency to short BTC as over-leveraged longs were wiped out.

Bitcoin whale holdings go through the roof

According to on-chain analyst Will Clemente:

“Whales holdings have increased by 103,600 BTC in the last 3 weeks.”

BTC whales have been on an accumulation spree despite the recent market crash. Market analyst Ali Martinez added that whales have been buying because addresses with 10,000 to 100,000 BTC purchased 50,000 BTC in just four days. 

Is Bitcoin emerging to be a macro asset?

Glassnode noted:

“The amount of Liquid Bitcoin on-chain has been in structural decline since the March 2020 market crash. This underlines a phase shift in investor appreciation of Bitcoin as a macro asset, with a long time horizon.”

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Meanwhile, open interest in the BTC market seems to be highly correlated with price. For instance, Bitcoin’s perpetual swaps open interest topped the $16 billion mark last week, and at the time, the price was hovering around the $50K mark. 

BTC’s price was $45,780 during intraday trading, according to CoinMarketCap

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Ethereum’s Crowd Sentiment Hits a Two-Month High as ETH 2.0 Surpasses 200,000 Validators

Ethereum recently jumped above the $2,400 level, triggering crowd sentiment on Twitter to hit a two-month high, as acknowledged by Santiment.

The on-chain metrics provider explained:

“Ethereum is showing its most positive sentiment right now since mid-May.”

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The crypto market experienced a significant upward momentum after Amazon Inc hinted that it would allow its users to pay for products using cryptocurrencies before the company denied it. 

This price surge made nearly 2 million ETH addresses return to profitability. Data analytic firm IntoTheBlock stated:

“As ETH surpassed the $2,300 mark again, the Historical In/Out of the Money indicates that roughly 2 million addresses are back ‘in the Money’ since yesterday. At the current price, 94.14% of the addresses (52.36m) currently holding ETH are in a state of profit.”

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Ethereum 2.0 validators top 200,000

According to crypto insight provider Bloqport, ETH 2.0 surpassed 200,000 validators as more investments continue trickling into this deposit contract.

 

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As a result, 5.5% of Ethereum supply is locked in ETH 2.0.

Ethereum 2.0, also known as the Beacon Chain, was launched in December 2020 and was regarded as a game-changer that seeks to transit the current proof-of-work (POW) consensus mechanism to a proof-of-stake (POS) framework.

The ETH 2.0 upgrade is expected to slash daily emissions in the Ethereum network by 90%, from 12,800 to 1,280. Moreover, yearly inflation is likely to drop from 4.3% to 0.43%. 

Based on this upgrade, Ethereum is also anticipated to undergo Triple Halving, which is a highly significant economic event for the asset’s price in the coming years. 

Meanwhile, ETH has been leaving exchanges in droves. This is bullish based on market forces that price increases whenever supply drops and demand rises. 

With a supply squeeze expected in the Ethereum market, whether this will trigger a price surge remains to be seen. 

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Bitcoin (BTC) $ 26,599.13 0.07%
Ethereum (ETH) $ 1,595.76 0.46%
Litecoin (LTC) $ 64.61 0.14%
Bitcoin Cash (BCH) $ 208.22 0.50%