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Home Bitcoin

Bitcoin, Ethereum investors suffer as bearish sentiment takes hold

June 28, 2024
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Bitcoin, Ethereum investors suffer as bearish sentiment takes hold
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  • Bearish sentiment across the crypto sector was on the rise.
  • Bitcoin and Ethereum witnessed a decline in profitable and short-term holders.

AMBCrypto’s analysis of Santiment’s data revealed that the bearish sentiment across the crypto sector was on the rise.

Bears leap forward

According to the data, there’s been a dramatic plunge in bullish sentiment across online forums like X, Reddit, Telegram, 4Chan, and BitcoinTalk.

Traders have seemingly lost faith in the markets, with bullish calls dropping significantly. Interestingly, bearish calls have also decreased, but at a much slower pace.

Fearful investors who were previously bullish might now be more likely to sell their holdings, driving down prices of Bitcoin [BTC] and Ethereum [ETH] in the short term. This could trigger a domino effect as others panic-sell, further increasing the decline.

However, the significant drop in bullish calls could also indicate a capitulation event, where investors have exhausted their hope and are forced to sell.

The selling pressure might eventually wane, leading to a period of consolidation and potentially a market bottom for BTC and ETH.

Source: X

A tale of two holders

At press time, BTC was trading at $61,361.69 and its price had fallen by 0.67% in the last 24 hours.

During this period, the MVRV ratio for BTC declined significantly. A fall in the MVRV ratio implied that along with the price, the profitability of most holders had also decreased.

Coupled with that, the Long/Short difference of BTC had also fallen. A declining  Long/Short ratio indicated that the number of long-term holders had declined compared to the number of short-term holders who were flooding the market.

See also  Examining how Bitcoin ETFs drove Galaxy Digital's 40% hike

These short-term holders are unreliable and could be swayed significantly by market fluctuations. If volatility persists, there could be more downward pressure on BTC in the long run.

Source: Santiment

Coupled with BTC, ETH could also face significant selling pressure. This is because of the fact that Ethereum and Bitcoin are heavily correlated. IntotheBlock’s data revealed that the co-relation between both these tokens 0.86 at the time of writing.


Read Ethereum (ETH) Price Prediction 2024-25


In terms of price, ETH was trading at $3,432.61 and over the last 24 hours, it had grown by 1.37%.

The MVRV ratio and Long/Short difference for ETH had declined as well, implying deciding number of profitable addresses and short term holders.

Source; Santiment

Next: Is Ethereum’s market bottom in? Price indicators point to a $5K target

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  • Bearish sentiment across the crypto sector was on the rise.
  • Bitcoin and Ethereum witnessed a decline in profitable and short-term holders.

AMBCrypto’s analysis of Santiment’s data revealed that the bearish sentiment across the crypto sector was on the rise.

Bears leap forward

According to the data, there’s been a dramatic plunge in bullish sentiment across online forums like X, Reddit, Telegram, 4Chan, and BitcoinTalk.

Traders have seemingly lost faith in the markets, with bullish calls dropping significantly. Interestingly, bearish calls have also decreased, but at a much slower pace.

Fearful investors who were previously bullish might now be more likely to sell their holdings, driving down prices of Bitcoin [BTC] and Ethereum [ETH] in the short term. This could trigger a domino effect as others panic-sell, further increasing the decline.

See also  Bitcoin, Ethereum inflows decline by $6B: Will stablecoins take the spot?

However, the significant drop in bullish calls could also indicate a capitulation event, where investors have exhausted their hope and are forced to sell.

The selling pressure might eventually wane, leading to a period of consolidation and potentially a market bottom for BTC and ETH.

Source: X

A tale of two holders

At press time, BTC was trading at $61,361.69 and its price had fallen by 0.67% in the last 24 hours.

During this period, the MVRV ratio for BTC declined significantly. A fall in the MVRV ratio implied that along with the price, the profitability of most holders had also decreased.

Coupled with that, the Long/Short difference of BTC had also fallen. A declining  Long/Short ratio indicated that the number of long-term holders had declined compared to the number of short-term holders who were flooding the market.

These short-term holders are unreliable and could be swayed significantly by market fluctuations. If volatility persists, there could be more downward pressure on BTC in the long run.

Source: Santiment

Coupled with BTC, ETH could also face significant selling pressure. This is because of the fact that Ethereum and Bitcoin are heavily correlated. IntotheBlock’s data revealed that the co-relation between both these tokens 0.86 at the time of writing.


Read Ethereum (ETH) Price Prediction 2024-25


In terms of price, ETH was trading at $3,432.61 and over the last 24 hours, it had grown by 1.37%.

The MVRV ratio and Long/Short difference for ETH had declined as well, implying deciding number of profitable addresses and short term holders.

Source; Santiment

Next: Is Ethereum’s market bottom in? Price indicators point to a $5K target
Tags: BearishBitcoinEthereumholdInvestorsSentimentSufferTakes

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Ethereum crosses $3.2K as L2 crosses new milestone: What now?

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The Case For Union Workers In Bitcoin Mining

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