Markets
Bitcoin Liquidation Hits Record Highs; Ethereum attracts new investors
As the price of Bitcoin takes a nosedive, data from behavior analytics platform Santiment reveals a significant trend: Bitcoin holders are withdrawing their assets from their wallets at an unprecedented rate. This trend reflects activity seen before Bitcoin reached its all-time high in March, but unlike then, the current trend reflects growing concerns about potential losses.
Bitcoin portfolios see biggest drop in holdings
Santiment reports that the number of Bitcoin wallets holding any amount of BTC has seen its most significant three-day drop since March 14.
This decrease indicates a massive sell-off as the price of Bicoin falls.
Currently priced at $65,651, Bitcoin has fallen from over $71,000 earlier this month and reached its mid-March peak of $73,000.
Growing Fear Among Bitcoin Investors
Bitcoin’s rapid exit from wallets suggests that investors are increasingly concerned about further price drops. BTC’s 30-day change is -2.1%, with a 7-day change of -3.5% and a 24-hour change of -0.8%. These numbers highlight the growing anxiety among Bitcoin holders, leading them to sell to avoid potential losses.
Ethereum gains popularity
In contrast to the decline of Bitcoin, the number of wallets holding Ethereum is increasing. This indicates growing interest and confidence in Ethereum despite its recent price fluctuations. Currently priced at $3,448.3, Ethereum was above $3,850 earlier this month. Despite a variation of -3.1% in 7 days and -33% in 24 hours, Ethereum registered an increase of +10.6% in 30 days.
The contrasting trends in Bitcoin and Ethereum holdings highlight the changing dynamics in the cryptocurrency market. As Bitcoin holders react cautiously to price drops and sell-offs, Ethereum is gaining new investors and showing resilience. This evolving scenario suggests a potential shift in investor preferences and strategies in the crypto market.
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