- As prices fell, discussions around cryptocurrencies plummeted.
- Whales are buying BTC dips while other whales continue to sell ETH..
Until January 22nd, the price of Bitcoin (BTC) remained above $40,000. Ethereum (ETH) has also been trading above $2,400 so far.
However, the last 24 hours have been disastrous for the top two cryptocurrencies. During the same period, BTC fell 3.00%, and the value of ETH fell 3.59%.
The decline has led to less conversation about the project.
Using Santiment’s social volume screen, AMBCrypto found that discussion of ETH has decreased by 21% compared to when the SEC approved a Bitcoin spot ETF. For BTC, it was down 35%.
📉 #Bitcoin It briefly fell below $40,000 for the first time since December 4. Monday was a bloodbath for most people. #Cryptocurrency sector. Specifically, discussions about it decreased by 35%. $BTC 21% less. $ETH compared to before #ETFs Approval Week. #FUD is
(Continued) 👇 pic.twitter.com/iievb8mbHJ
— Santiment (@santimentfeed) January 22, 2024
In addition to the decline in messages related to these cryptocurrencies, the decline also meant traders refrained from jumping into price action.
Previously, AMBCrypto assessed the likelihood of Bitcoin falling below $40,000 before the end of January. In the article we mentioned how it is possible. But the speed at which it occurred was unexpected.
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However, the decline could be just the correction Bitcoin and Ethereum need to bounce back higher. Nevertheless, it is highly likely that recovery will not occur soon as further declines are likely to continue.
One of the reasons for a potential rebound could be linked to Weighted Sentiment. At press time, Bitcoin’s weighted sentiment had fallen to 0.359.
On the other hand, the indicator on the ETH side also fell to -0.803.
Weighted Sentiment measures positive/negative opinions about an asset. Therefore, the decline into negative territory suggests that the average perception of ETH and BTC was not optimistic.
Source: Santiment
However, in terms of price movement, this decline could herald a higher value for the cryptocurrency. For example, on November 3, 2023, the Bitcoin price closed at $38,688.
At the time, Weighted Sentiment was about the same as it was at press time.
On the same day, the price of ETH was $2,052 and the indicator was also negative. As of December 5, the price of Bitcoin was $44,080 and ETH was $2,293.
Big investors want discounts
In addition to this period, the same movement occurs several times. Therefore, when the resurgence arrives, there is a chance that BTC and ETH will rise above $49,000 and $2,700, respectively.
Meanwhile, some market participants appear to be taking steps to encourage a potential rebound.
According to AMBCrypto’s assessment of Spot On Chain data, the whale purchased $1.03 million worth of BTC just before the BTC decline fell below $40,000.
Another whale bought $600,000 worth of coins when the price fell further. However, ETH is not enjoying that favor yet as it appears to be experiencing a massive sell-off.
Realistic or not, the market cap of ETH in BTC terms is:
For example, the Ethereum Foundation was recently sold. Additionally, Alameda Research and Chelsea Network have moved some ETH to centralized exchanges (CEXs).
This allows BTC to recover much faster than ETH unless whales decide to add ETH to their purchases.