Connect with us
Active Currencies 13952
Market Cap $2,299,591,069,392.62
Bitcoin Share 51.57%
24h Market Cap Change $-2.33
Bitcoin

Here’s how Bitcoin [BTC] is REALLY doing after the FTX episode

2min Read
Posted:
Avatar
editors
Here's how Bitcoin [BTC] is REALLY doing after the FTX episode
Avatar
editors
Posted:

Share this article

  • Bitcoin’s social dominance was affected by CEX tokens
  • A decline in dominance could impact BTC prices negatively
  • Miners continue to face pressure, however, whales still support BTC

According to Santiment, all the focus around centralized exchanges has taken the crypto-community’s attention away from Bitcoin [BTC]. Historically, a decline in social dominance is always met with a decline in its price.

Read Bitcoin’s Price Prediction 2022-2023

As is evidenced by the chart, there has been a correlation between Bitcoin’s prices and its social dominance. When an exchange sees a spike in social dominance, as was the case with Crypto.com, there is a decline in BTC‘s prices.

This pattern was observed repeatedly with other exchanges such as Binance and FTX as well.

Source: Santiment

If Bitcoin does not regain its social dominance in the future, there may be a possibility that BTC’s prices might drop further. This, while other exchanges keep garnering attention.

However, at the time of writing, Bitcoin’s social dominance had risen somewhat over the last few days. BTC’s price followed suit, as it witnessed an uptick over the same time period. 

Bitcoin’s velocity noted a huge spike as well, implying that the number of times BTC moved between addresses had increased significantly over the past few days. 

This signalled a decline in activity for Bitcoin. Another indicator of decreasing activity would be the decline in Bitcoin’s mean transaction volume. According to Glassnode, Bitcoin’s mean transaction value depreciated materially as it hit a 22-month low on 18 November.

Source: Santiment

In the meantime, miners are also facing the heat. At the time of writing, Bitcoin miners’ balance had declined significantly and hit a 10-month low.

Declining miners’ balance is a sign that miners have been facing immense selling pressure. If BTC’s price declines further, miners will have to sell the BTC awarded to them so that they can turn a profit.

Source: Glassnode

Deep pockets show faith in BTC

Even though miners seemed to be losing their faith in Bitcoin, whales continued to show support for BTC. According to data tracked by Glassnode, the number of addresses holding more than 10 coins has grown significantly. At press time, more than 150 thousand addresses were holding over 10 Bitcoin.

Despite the support from large addresses, Bitcoin’s hold on the market continued to decline as its market cap dominance depreciated by 4.17% over the last 30 days. At the time of writing, BTC had a share of just 37.4%.

Bitcoin, at the time of press, was trading $16,765. 

Source: Coinstats

 

Previous:
Next:

Share

Avatar
Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.