Bitcoin’s fragility of the moment has affected this BTC HODLer motto the most

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Bit­coin [BTC] can be con­sid­ered as one of the worst hit tokens since the Ethereum [ETH] Merge last week. The token even dived to its three-month lows since last week as it crashed to below $18,500. How­ev­er, at the time of writ­ing, BTC did wit­ness a major uptick as the price surged by 4.7% to stand at $19,400. Despite climb­ing back above $19,400, the sen­ti­ment around BTC looks negative.

As per San­ti­ment, social trends in the last week have tak­en a major turn. Cryp­tocur­ren­cies such as ETH and Car­dano [ADA] have seen a mas­sive uptick relat­ed to their respec­tive upgrades.

How­ev­er, one of the fatal­i­ties of this nar­ra­tive has been Bit­coin, as it saw a sharp decline of 17.5% in social vol­ume. His­tor­i­cal­ly, a high­er social trend has always appre­ci­at­ed Bitcoin’s prices in the short-run at least.

One of the major bear­ish remarks for Bit­coin is the fad­ing of “buy the dip” calls in the mar­ket. As San­ti­ment report­ed, traders were ear­li­er “brag­ging” about buy­ing the dip but the sit­u­a­tion has changed since. The update also claimed there is “polar­iza­tion” in the market.

Source: San­ti­ment

Out of the blue? Not really!

As report­ed ear­li­er, the sell-off has been expect­ed in the mar­ket after heavy coin inflows into exchanges. Between 7 Sep­tem­ber and 14 Sep­tem­ber, 1.69 mil­lion BTC that stood to be worth $33.5 bil­lion was sent to exchanges. Accord­ing to San­ti­ment, this was the high­est BTC vol­ume moved since Octo­ber 2021.

How­ev­er, anoth­er fac­tor is begin­ning to open the cracks in Bit­coin. Per a recent Glassnode update, Medi­an Trans­ac­tion Vol­ume (7d MA) just reached a two-year low of $469.39. This showed a reduc­ing trend around Bit­coin favouritism in the cryp­to mar­ket. For any major upturn in for­tunes, there is now a des­per­ate need for Bit­coin to ramp up volume.

Source: Glassnode

Fur­ther­more, cryp­to enthu­si­ast and co-founder of Reflex­iv­i­ty Research, Will Clemente, pro­vid­ed an over­due opti­mistic update for the Bit­coin com­mu­ni­ty. He stat­ed that despite a major 60% fall in prices since last year, 65% of Bitcoin’s sup­ply did not move in same period.

This has fur­ther incen­tivized the sen­ti­ment regard­ing Bit­coin to curb the bear­ish influ­ences. This means that BTC long-term hold­ers still believe in the token since they are yet to exit their positions.

Source: Will Clemente/ Twit­ter

Per­haps, the future of Bit­coin is the biggest mys­tery in the cryp­to mar­ket at the moment.

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