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A lot in the financial world is interconnected. An economic upturn in an economy could have a glorious impact on the stock prices of a company which might be an active investor in that country. Likewise in the cryptocurrency sector also, market sentiments could be directly related to the performance and future outlook of Bitcoin.
Why?
Bitcoin is by far the most popular and the oldest cryptocurrencies in the world with a market cap that will take altcoin a long time to reach. The latest findings by Santiment showcases that the Bitcoin Age consumed has experienced a large surge due to the recent increase in price. The Bitcoin Age Consumed is a metric that is calculated by multiplying the number of tokens changing addresses on a particular refereed date divided by the time since they were moved last. The indicator is extremely important because it helps in indicating volatility which causes a price shift. Last year more than 79.955 BTC were inactive for more than a year and now on Oct 23, they changed addresses which go a long way in showing a paradigm shift among the traders.
Source: Cointelegraph
MDIA or Bitcoin’s Mean Dollar Invested Age also experienced a downtrend in the last 7 days or so. This could only be translated to short-term distribution and profit-taking by long-term stable Bitcoin investors. Its MDIA also noted a certain similar drop-off close to its local price high in February and September which indicates increased risk of price volatility.
Talking about average sentiment, in the case of Bitcoin that has been a huge impactful change considering its latest push beyond the $13k figure. The last 12-13 days have even changed the sentiments from a bearish trend to an overall bullish trend. The bitcoin-based sentiment was recorded highest last Friday and the last time it was recorded on May 12th after the Bitcoin halving took place.
Let us take a look at some key indicators that strengthens Bitcoin’s dominance:
- There has been a renewed interest in holding Bitcoin which can be seen by the total balance of addresses holding between 100 and 1000 BTC and this number has grown exponentially by an additional 120,000 BTC in the last 2 weeks.
- On-chain Bitcoin transaction has also recorded a staggering growth of 17.7% in the last week. The high it experienced at a 20-day high was receded on October 22 at a high of 757,270.
- 2,241 Whales currently have more than 1000 Bitcoin which is on average giving a weekly return of 13%.
On the whole, Bitcoin is meeting positive cheers everywhere. Bitcoin-related mentions on social media have also seen a major activity thumping recording a 3-month high on October 31’ st. holistically speaking and observing past trends, it has been seen that rarely bullish sentiments and positive talks have been good for digital assets. It has in fact coincided with price consolidations and market corrections and this is not just for Bitcoin but also Ether and other cryptocurrencies.