Journalist
Posted:
- Bitcoin’s dominance returns to 50%, signaling a market shift.
- The increasing interest in whales and retail, along with increased active addresses, are impacting Bitcoin market dynamics.
Despite Bitcoin [BTC] Due to the recent price drop from the $26,000 mark, the company has managed to maintain its dominant position in the market. This raised questions about the fate of alternative cryptocurrencies.
Read the Bitcoin price forecast for 2023-2024
Bitcoin’s dominance continues
Recent data indicated that Bitcoin’s market dominance soared again 50%, indicating a loss of market share for alternative cryptocurrencies. In essence, this means that Bitcoin has become a more important player in the market, overshadowing its competitors.
Moreover, whales’ interest in Bitcoin increased. The number of addresses holding significant amounts of cryptocurrency reached new highs. This trend can have both positive and negative consequences for the market.
On the one hand, it indicated growing confidence among major investors. On the other hand, it raised concerns about the concentration of wealth within the Bitcoin ecosystem.
#Bitcoin $BTC The number of addresses with 1+ coins just reached an ATH of 1,020,176
Previous ATH of 1,020,156 was observed on September 10, 2023
View statistics:https://t.co/s7tx1xxyz3 pic.twitter.com/Nhq7NyST5w
— Glassnode Alerts (@glassnodealerts) September 14, 2023
Retail interest also increased, with a record number of addresses holding smaller amounts of BTC. This increased retail participation could impact market dynamics. It suggests that Bitcoin is becoming more accessible and attractive to ordinary investors, potentially leading to further adoption.
Active addresses on the network also rose, reaching a four-month high. This increase in activity may indicate growing interest and involvement within the community. It means more people are actively using Bitcoin, which can be a sign of a healthy and vibrant ecosystem.
The previous four-month high of 59,694,798 was observed on September 13, 2023
View statistics:https://t.co/SUxtdZ0Wuc pic.twitter.com/mgT3fDvdtj
— Glassnode Alerts (@glassnodealerts) September 14, 2023
However, some metrics such as the MVRV ratio and long-short differential have declined. These indicators suggest that the number of short-term bonds may increase. This could lead to more volatility in the market, as short-term traders tend to react quickly to price movements.
Source: Santiment
What do traders do?
Bitcoin open interest fell, which could impact trading dynamics and market sentiment. A decline in open interest may imply reduced speculative activity or uncertainty in the market. Traders can take a cautious approach in response to recent price movements.
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In terms of trading sentiment, long positions are slightly larger than short positions, indicating cautious optimism among market participants. While more traders are betting that the price of the coin will rise, the margin is narrow, indicating that there is still a degree of uncertainty in the market.
Source: mint glass