Bitcoin Whale Holdings Drop But Social Interest Increase.
Recent data released by Santiment indicates that while Bitcoin whales are reducing their stash, interest on social platforms for the coin is increasing.
The Bitcoin market seems to have entered a new phase. That’s according to the recent opinions made by Santiment, a popular market intelligence firm that researches social and on-chain metrics in the crypto space. During its research, Santiment noticed two conflicting trends that may hold the key to understanding the future dynamics of the Bitcoin market.
An 11-Month Low
Apparently, Bitcoin whales are cutting back on their holdings as fears spread concerning the prevailing inflation and global economic recession. There are now much fewer addresses holding between 100 and 10k BTC coins as compared to 29 months ago. In a Twitter post, Santiment intimated that this development indicates that this dynamic has been playing out for 11 months now.
In essence, the addresses in question currently hold around 45.7% of all BTC in circulation. This is the lowest it has been since April 4th, 2020.
🐳 The amount of #Bitcoin held by whales has been dropping for 11 months now. As fears of #inflation and a world #recession continue, addresses holding 100 to 10k $BTC have lowered their percentage of supply held of #crypto's top asset to 29-month lows. https://t.co/YP55vxCfJr pic.twitter.com/2tAIvOsD2i
— Santiment (@santimentfeed) September 25, 2022
A Spike In Bitcoin Interest In Social Platforms
Interestingly, more users on social platforms seem to be interested in discussing BTC now. That’s a stark contrast to whales’ current perception, leading to a decrease in their holdings. According to a tweet by Santiment, Bitcoin has been attracting more attention on social platforms over the weekend, and this trend may continue in the coming days.
Apparently, more than 26% of crypto-related discussions on social platforms have been centered on Bitcoin. This hasn’t happened since mid-July. The analytics firm says that BTC-related discussions covering over 20% are great for the top coin.
📢 A spike in #Bitcoin interest on social platforms came this weekend. Among #crypto's top 100 assets, $BTC is the topic in 26%+ of discussions for the first time since mid-July. Our backtesting shows 20%+ dedicated to Bitcoin is a positive for the sector. https://t.co/fMQ9gLollz pic.twitter.com/qL3CNPiSoS
— Santiment (@santimentfeed) September 26, 2022
As mentioned, more attention to BTC on social media means a growing willingness to invest and positive sentiments towards the coin. This is despite the current market hardships. At the time of this writing, BTC is trading at around $19,120, marking a 2.5% increase over the last seven days. Some analysts have expressed opinions that Bitcoin may have reached its bottom price. On the bright side, the growing attention could mean an oncoming price rally for Bitcoin, but as always, time will tell.