On-chain analytics company Santiment believes that what is currently called a bear market by crypto traders is likely to reverse soon, and crypto prices may U-turn.
"Positive sign that crypto markets will rebound"
Santiment tweeted that the main reason for the potential rebound of cryptocurrencies could be the fact that crypto traders now are showing FUD (an acronym meaning "fear, uncertainty, doubt" popular in the crypto space) and increasingly calling the current state of things a "bear market."
The Santiment team pointed out that, historically, big FUD shown by traders and other market players led to substantial price surges of crypto.
🐻 A positive sign that #crypto markets will rebound is the fact that traders are increasingly referring to current market conditions as a #bearmarket. Historically, when traders show #FUD, the probability of price rises increases considerably. https://t.co/jxENgl1nNz pic.twitter.com/K8W7uAotz6
— Santiment (@santimentfeed) August 24, 2023
Bitcoin rebounds, driven by this factor
Over the past 24 hours, the premier global cryptocurrency, Bitcoin, demonstrated a small rise of 2.47%, going up from $25,831 to the $26,470 area, where it is trading now.
According to a Santiment tweet published earlier today, this rebound of BTC can be attributed to recent accumulation by medium and large investors, known as sharks and whales on the market.
Per Santiment, they have purchased cumulatively a whopping $308.6 million worth of Bitcoin over the past week. Now, there are 156,600 wallets out there that contain from 10 to 10,000 Bitcoins each.
🐳🦈 #Bitcoin jumped back as high as $26.8K Wednesday as key whale & shark addresses are now collectively adding to their stacks once again. There are currently 156,660 wallets holding 10 to 10,000 $BTC, and they have accumulated $308.6M since August 17th. https://t.co/6vuJpHRTvD pic.twitter.com/vuNgEER2fZ
— Santiment (@santimentfeed) August 23, 2023
Vladislav Sopov