Altcoins
Santiment Analyst Says Bitcoin Health Remains Crucial Factor for Altcoin Rally
Brian de Santiment recently appeared on The latest episode of Thinking Cryptowhere he shared his views on altcoin rally. Brian talked about the top 50 coins by market cap and said that Dogecoin appears to be dead, while Shiba Inu has shown little change over the past 30 days. Among the biggest gainers were MAGA (up 178%), Pepe (up 70%), and Floki (up 73%).
Brian confirmed that social volume changes and price changes are critical indicators. Although most coins saw an increase in price, a few decreased. Social volume is particularly important for speculative sectors like meme coins. Mentions of Dogecoin have declined, while Pepe is discussed more than twice as often as last month, which could lead to increased volatility.
The host then said that Bitcoin is once again seeing an increase in ETF flows, with interest from major players like BlackRock and Fidelity. Bitcoin is trying to advance towards a new all-time high, although it is currently pulling back a bit.
Reacting to the same, Brian said that whether you are trading coins, AI or any other sector, the health of Bitcoin is crucial. If Bitcoin collapses, other coins will likely follow suit. Conversely, if Bitcoin breaks a new all-time high and moves towards $80,000, other altcoins will also benefit.
Whale wallet activity, particularly those holding between 10 and 10,000 BTC, which make up about two-thirds of the supply, is a key metric for Bitcoin. These wallets can indicate the direction of the Bitcoin price. However, the recent consolidation of portfolios linked to Mt. Gox fiduciary distorted this data. Now, looking at wallets containing 10 BTC or more, the picture is clearer: as these wallets accumulate, the price tends to increase, and as they distribute, the price tends to become more volatile.
Since the end of 2023, the accumulation of BTC by these large wallets has been constant, leading to price increases. However, since the end of May, there has been a slight decrease in accumulation, which raises some concerns. Zooming out over the past four years, a similar decline was seen starting in February 2022, which preceded a tough year for crypto due to rising interest rates and other factors. Despite these fluctuations, since the start of 2023, accumulation has resumed, leading to a quadrupling of The price of Bitcoinwhich is significant.
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