Will Crypto Finally Bounce? Analyst firm points to a key catalyst behind the recent market-wide rally
Analytics firm Santiment says the crypto market is primarily a “sea of green” as major digital assets begin to rally.
Santiment says that although Bitcoin (BTC), Ethereum (ETH) and altcoins like ApeCoin (APE), Fantom (FTM), Ethereum Classic (ETC) and THORChain (RUNE) are seeing double-digit percentage growth, the mentions on social media increasing declining.
According to Santiment, the declining discussion rates of crypto assets on social media forums suggest that fear of missing out on profits (FOMO) has not gripped retail investors, suggesting markets are unlikely to overheat just yet.
“Bitcoin is up +12% and has bounced back above $23,000 this week. The bigger story was Ethereum (+33%) and altcoins like ETC (+69%), APE (+39%), FTM (+33%) and RUNE (+31%). As long as social volume stays low, the crowd hasn’t gotten FOMO fever yet.”
Source: Santiment/Twitter
Looking to Ethereum, the analytics firm says key stakeholders in the second largest crypto asset by market cap changed their behavior after July 13, when ETH fell to a low of around $1,000.
According to Santiment, holders of 1,000 to 10,000 ETH reduce their balances. The analytics firm says those holding 10 to 100 ETH are expanding, while those holding between 100 and 1,000 ETH are increasing their balances after initially selling their holdings.
“Especially the group from 1,000 to 10,000 ETH, their holdings are decreasing. Of course, due to a number of liquidity pools and perhaps exchanges in this group, we cannot say that this is true dumping. But surely their balance is declining.
10-100 ETH Group is growing slowly but steadily.
Small owners 0-10 ETH don’t know what to do, doing nothing, probably afraid of the recent bottom and still worried.
100-1000 ETH holders initially took some profits but then went back up.
And all were triggered by the July 13 bottom.”
ETH is trading at $1,559 at the time of writing, while BTC is exchanging hands at $22,813.
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