Business
Bitcoin and Major Cryptocurrencies Experience Minor Declines Amid Mixed Market Sentiment
Explore the latest trends as Bitcoin and major cryptocurrencies face slight declines amid a backdrop of mixed market sentiment. Stay informed on market dynamics and potential impacts on your investments.
Market Overview: Bitcoin and Major Tokens Experience Minor Declines
In the past 24 hours, Bitcoin (BTC) along with several major cryptocurrencies have experienced slight downturns, with few catalysts to sustain their midweek rally. According to data from CoinGecko, BTC, ether (ETH), Solana’s SOL, BNB Chain’s BNB, and Cardano’s ADA all recorded losses of just under 1%.
However, it was a different story for XRP and memecoin dogecoin (DOGE), which were among the few major tokens showcasing notable gains, climbing by 5% and 4.5%, respectively. The broad-based CoinDesk 20, an index designed to track the liquidity of the largest tokens by market capitalization, saw a modest increase of 0.85%.
XRP’s recent rise can be attributed to the launch of a new professional fund by investment firm Grayscale, which includes XRP in its portfolio within the United States. Conversely, the reason behind DOGE’s uptick remains unclear, with no apparent catalyst driving its increase.
Despite the relatively stagnant movement over the last day, Bitcoin has seen a significant uptick of more than 6% this week, positioning it for its most considerable weekly gain since the week ending August 25, when it surged by 10%.
On-chain analysis platform Santiment reported earlier this week a notable decline in activity among so-called “whales,” or large holders of cryptocurrency. This downturn has occurred over the past month, suggesting that these influential market players are currently seeking clearer signals before committing substantial amounts of capital.
Specifically, Bitcoin transactions exceeding $100,000 have dropped by 33.6% since their peak in March and April, while ether has experienced a more pronounced decline of 72.5% since its peak in April. Santiment commented, “This isn’t necessarily a bearish signal. Whales can be equally active during a bull or bear market. However, it indicates that significant stakeholders are waiting for the right moment to act amidst extreme crowd emotions of greed or fear.”
The firm further elaborated, stating, “Based on sentiment patterns, a return to $70K would likely trigger significant crowd FOMO (fear of missing out), while a retreat to $45K could provoke widespread FUD (fear, uncertainty, doubt).”