Bitcoin (BTC) recently topped the $ 52,000 level, but this has been short-lived as it spike Cryptocurrency experienced a significant pullback that resulted in a loss of $ 10,000 when overindebtedness 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 provider of on-chain metrics explained:
According to our algorithm for measuring the comment volume in combination with positive vs. negative BTC values, Crowd FUD has reached a historic level compared to Bitcoin. 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
To 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, bitcoin futures perpetual funding rate recently turned negative, suggesting a bias towards short 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 into a macro asset?
Glass knot noticed:
“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, the open interest of Bitcoin’s perpetual swaps passed the $ 16 billion mark last week, and at that time the price was hovering around the $ 50,000 mark.
The price of BTC was $ 45,780 according to intraday trading CoinMarketCap.
Image source: Shutterstock