Bitcoin (BTC) recently surpassed the $ 52,000 level, but it was short lived as the top cryptocurrency saw a significant retreat that resulted in a loss of $ 10,000 as overindebted factors came into play.
Santiment acknowledged this along with Fear, Doubt, and Uncertainty (FUD), which has caused the sentiment of the masses towards BTC to plummet to all-time lows. The on-chain metrics provider stated:
“According to our algorithm, which measures the comment volume, Crowd FUD has reached a historical level compared to Bitcoin in combination with positive vs. negative BTC values. In the past, severe negativity led to inevitable price jumps after weak hands failed. “
Still, Santiment noted that the high negativity of the Bitcoin market could trigger a price spike based on the elimination of weak hands. These are investors who are speculating in an asset for purposes other than future.
BTC addresses profitability reductions
According to cryptanalysis firm Glassnode, the number of Bitcoin addresses in profit hit a 1-month low of 31,328,534,161.
On the flip side, the perpetual funding rate of bitcoin futures recently turned negative, suggesting a tendency towards short positions in BTC as over-indebted long positions were wiped out.
Bitcoin whale populations are skyrocketing
According to on-chain analyst Will Clemente:
“The whale populations have increased by 103,600 BTC in the last 3 weeks.”
BTC whales have been on a collecting frenzy despite the recent market crash. Market analyst Ali Martinez added that whales bought because addresses with 10,000 to 100,000 BTC bought 50,000 BTC in just four days.
Is Bitcoin emerging as a macro asset?
“The amount of Liquid Bitcoin in the chain has been structurally declining since the market crash in March 2020. This underscores a phase shift in investors’ appreciation of Bitcoin as a macro asset with a long time horizon. “
Meanwhile, the open interest in the BTC market appears to be strongly correlated with price. For example, Bitcoin’s open interest in perpetual swaps topped $ 16 billion last week, and at that time the price was hovering around $ 50,000.
According to CoinMarketCap, the price of BTC during intraday trading was $ 45,780.
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