Amid the recent Bitcoin price swings, a key metric shows signs of recovery, but a market breakout may not yet be on the table.
On Wednesday, March 5, prominent crypto analytics provider Santiment Feed disclosed that the Bitcoin network has seen an increase of 50,000 wallets over the past month.
This is typically bullish as it signals a growing interest in the asset and increased network activity. However, Santiment has warned that it is perhaps not yet time to bring out the fireworks.
This is because the new additions only appear to be smaller investors. Whales, a term for investors with market-moving holdings, have yet to come to the party.
Specifically, the network has added 37,390 wallets holding less than 0.1 BTC or less than $9,000 at current rates and 12,754 wallets with holdings between 0.1 BTC and 100 BTC, i.e. roughly between $9,000 and $9 million.
Meanwhile, on the other hand, whales with holdings of 100 BTC and above have reduced by six, suggesting a continuation of profit-taking trades.
Santiment cautioned that till this whale class starts growing too, a market-wide resurgence may remain off the table.
Uncertain Geopolitical Conditions to Blame?
The continued profit-taking from whales comes as risk assets continue to be faced with geopolitical uncertainty.
On Tuesday, March 4, President Donald Trump stoked trade war and inflation concerns by imposing significant tariffs on major U.S. trade partners. At the same time, his strained relationship with Ukraine President Volodymyr Zelenskyy and his proposed plan to end the Russia-Ukraine war has raised concerns.
These, however, are just a few of the concerns facing risk markets like crypto.
“Until we get some certainty on tariffs/Ukraine/tax cuts/Doge cuts it is difficult to call a bottom for risk,” Standard Chartered Head of Digital Assets Research Geoffrey Kendrick recently wrote in a note to investors.
The analyst has cautioned that Bitcoin could risk a steep decline to the $69,000-$76,500 range.
Still, at the time of writing, Bitcoin is trading near the $92,000 price point, representing a 5% gain on the day as its cha cha slide between supportive rhetoric from the White House and overarching macroeconomic and geopolitical concerns continues.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
