Bitcoin Whales Drive Altcoin Market FOMO, Santiment Warns Of Macroeconomic Risks
The crypto market has seen its highest gains in the past week since the start of the 2022 bear market, led by Bitcoin’s price reaching above $21,000.
However, on-chain analytics firm Santiment has observed that traders are behaving as if the market has reached its peak. Furthermore, Santiment has noted that Bitcoin’s profit transaction ratio is currently at its highest level since February 2021, suggesting that a potential reversal may lead to a general correction in the crypto market in the coming weeks.
It has been reported that the influx of Bitcoin whales – 416 more BTC addresses holding between 100 to 1,000 BTC in the past eight weeks alone – has given the altcoin market the confidence to experience FOMO.
Santiment also warns that the crypto market is not immune to the macroeconomic factors that affect global economies. Additionally, the future of crypto’s mainstream adoption is dependent on worldwide regulations. In its mid-month crypto report, Santiment highlighted the changes in social volume over the past thirty days.
According to the report, Ethereum recorded a spike of over 50%, while Bitcoin posted a decline of 4.92%. In the stablecoin market, Tether (USDT) and USDC posted a decline in the social volume of approximately 26% and 40% respectively.
The next move in the crypto market is practically impossible to guess but historical data suggests that the industry is in the early stages of multi-week consolidation. Notably, the total crypto market capitalization is about $1.03 trillion today with approximately $122 million liquidated in the past 24 hours.