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📺 In our latest This Week in Crypto, we discuss the signs that led to the drop. With tax-related profit taking making sense, there may still be volatility until 2025 begins. But long-term, these signals point to a great future for cryptocurrencies. 👇 https://www.youtube.com/watch?v=vx1XqWEfuyA
📊 When looking to buy low (or sell high), don't just look at prices... Look at how competing traders have performed. Bitcoin's average returns (based on wallets making at least 1 transfer in the past 30 days) have a -1.9% return, despite BTC's all-time high happening just over 3 days ago.
With many traders buying at the top as euphoria was truly kicking in, Bitcoin now finds itself with the lowest average wallet returns (30-day MVRV) since the start of the bull rally on October 10th.
With this metric averaging 0% over the history of Bitcoin trading (due to markets being a zero-sum game), consider every percentage point into the negatives as an indication that there is an 'opportunity' to buy while other positions are at a loss. There is no guarantee that we are at (or even near) the exact local bottom, but playing the probabilities with a DCA strategy mixed in, will historically bode well for your portfolio. 👍
💸 With Bitcoin falling as low as $95.5K today, the ratio of crypto discussions that are about buying crypto's dip has reached its highest level in over 8 months. The last time we saw the crowd nearly this enthusiastic about dip buying was the major crash on August 4th. Since that time, Bitcoin's market cap is +81% higher.
🐳 Despite sizeable crypto corrections this week, several altcoins are making very large whale transfers that are indicative of potential dip buys. Among $500M+ market caps, these are the assets seeing the highest rises in whale transactions over the past week:
🐳 Just prior to crypto's local top on December 16th, there were signs of many altcoins seeing particularly high transactions. As indicated in the below graphic, our Top Transactions model indicates that assets link $ANKR, $COIN, $COTI, $MANA, $HOT, $IMX, $SSV, and $SUSHI saw some of their largest transfers on their respective networks on this day.
This does not necessarily mean that December 16th was the definitive local top for this bull rally. But warning signs like these are generally reliable as short-term reversal signals.
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📉 After the FOMC interest rate cuts, both crypto and equities traders were left feeling a bit concerned. Not because of the current cuts, but due to Jerome Powell's projection for 2025 to have half the amount of rate cuts as expected.
Altcoins, in particular, have gotten hammered over the past 24 hours. Assets like Avalanche (-16%), Chainlink (-16%) Litecoin (-16%), and Pepe (-17%) have pulled back considerably over the past 24 hours. If this was indeed an overreaction, there is a reasonable chance that the projects with the biggest drops will be the ones worth taking the biggest dip buy chances on.
🇺🇸 The US Fed has taken the expected action of cutting interest rates by 25bps. However, the cuts came with a hint of cautiousness by Jerome Powell. His hinting of only a 50bps cut through 2025 is only half of what the public had been expecting prior to today's FOMC meeting.
Under these conditions, we are seeing big drops throughout multiple sectors. With Bitcoin and crypto being closely tied to the S&P 500 and other equities markets, prices have retraced on this news.
Although the immediate price reaction has been disappointing, Bitcoin and many altcoins have seen slightly less correlation with stock markets this month. During bull markets, crypto thrives when it has little or no association with equities.
Considering BTC has stayed above $100K (for the time being) and not dipped as aggressively as its normal fluctuations compared to the S&P 500, this can actually be interpreted as a sign of strength once the dust settles over the next 24-48 hours. 👍
💸 Among traceable wallets, there is a net average of ~$40M Tether per day moving on to exchanges over the past 8 weeks. Helping to fuel this bull rally and the many historic crypto pumps, look for stablecoin 'dry powder' to continue flowing in during this final stretch of 2024.
🐧 The Pudgy Penguin NFT project and its newly launched token, $PENGU, has been listed on multiple exchanges, including OKX and Binance. There are also details about airdrops and trading activities. The excitement around the token's market performance and the community's engagement further contribute to its trending status.
💸 Ripple's new stablecoin, $RLUSD, is designed to be backed 1:1 by the US dollar. Discussions highlight its role as a stablecoin in the cryptocurrency ecosystem, particularly in relation to XRP. The excitement surrounding its launch includes its advantages such as stability, low transaction costs, and speed compared to traditional banking methods. Analysts are noting that RLUSD could facilitate smoother transactions and potentially impact the price of XRP.
🪙 Bitcoin's new all-time high of $108.3K has increased discussions about investment strategies, market behavior, and its perceived value as a store of value and hedge against inflation. As crypto's top asset continues to make history, there is a clear growing interest in Bitcoin's performance and its implications for the broader cryptocurrency market.
Track the topics driving crypto markets on a daily basis with this convenient @santimentfeed dashboard here! 👇
🧑💻 Here are crypto's top overall coins by notable development activity the past 30 days. Directional indicators represent each project's ranking rise or fall since last month:
🐳 There are currently 104 whale wallets holding at least 100K Ethereum. Their combined holdings currently sit at 57.35% of all existing ETH tokens, currently worth ~$333.1B.
Meanwhile, wallets with 100-100K hold their lowest ratio of supply in history, 33.46%. And sub-100 ETH wallets hold a near 4-year low of 9.19%.
With the caveat that the #2 market cap is increasingly comprised of DeFi and staking wallets, it is still generally a bullish long-term signal when a coin's most prominent key stakeholders continue accumulating... especially when it's a 9 year-old asset with whales holding their highest ever portion of coins.👌
🗣️ As Bitcoin's new $107.8K all-time high and Ethereum's return above $4K are causing more bullish narratives, these are the tokens seeing the highest level of social media traction:
🪙 @Bitcoin $BTC: Crypto's top market cap hit a surprise ATH after the crowd began showing impatience. Discussions once again are focused on Bitcoin's dominance in the cryptocurrency market and its impact on altcoins.
🪙@Vanachain $VANA: Mentioned in the context of escrow transactions and token sales, indicating its relevance in buying and selling activities. The excitement is amplified by its listings on major exchanges like Upbit and Binance, as well as its launch on Binance's Launchpool. Additionally, the token is linked to a decentralized Layer-1 blockchain focused on user data control.
🪙@Moca_Network $MOCA: Saw a significant price surge exceeding +400% following its listings on major South Korean exchanges, Upbit and Bithumb. The excitement around $MOCA is further fueled by its aim to enhance cultural interoperability in the Web3 space.
Keep tabs on which cryptocurrencies are driving markets and generating the most hype on the @santimentfeed Social Trends dashboard here! 👇
🎉 Bitcoin continues to break records, now eclipsing a $107.1K market value for a new all-time high! The amount of non-empty wallets on the network is now up to 54.62M, increasing by +5.2% over the past year. 👍
🥳 Bitcoin has climbed to $106.5K for the first time in its 16+ year history. Since the bull rally began back on October 10th, there has been a net increase of 1,582 more wallets that hold at least 100 BTC, a jump of +9.9% more wallets in the relatively short period of time!
📺 This week in crypto was full of sideways action for BTC, closing the week on a high back to $102.2K. Meanwhile, altcoins have mainly sunk with some dip buy opportunities opening up. Catch our video analysis! https://www.youtube.com/watch?v=bH1KZ0V6un0
🤑 Bitcoin has climbed back to $101.5K as crypto's week closes. Buy calls are quiet on social media. For Bitcoin's next big swing, this chart will be highly useful as to when to buy (while the crowd is panicked) and sell (while the crowd is greedy). 👇 https://app.santiment.net/s/CpK7XcM9?utm_source=twitter&utm_medium=post&utm_campaign=twitter_btc_buy_vs_sell_calls_b_121324/&fpr=twitter
📈 Ethereum is seeing an 8-month high level of new wallets created. With an average of 130.2K addresses newly popping up on the network every day so far in December, ETH is seeing renewed interest it hasn't seen since April.
🧑💻 Here are crypto's top Real World Assets (RWA's) by development. Directional indicators represent each project's ranking rise or fall since last month:
🔗📈 Chainlink has surpassed $29 for the first time in 37 months, generating excitement from the community. This latest decoupling of LINK's price has been supported by rising levels of whale & shark accumulation.
🐳🦈 Wallets with 100K+ LINK have added 5.69M LINK to their collective wallets in just 2 months
🐟🦐 Wallets with less than 100K LINK have dumped 5.67M LINK from their collective wallets in just 2 months
Throughout the history of crypto, large wallets scooping up coins from impatient or panicked retail traders is typically a recipe for market cap rises.
Of course, the success of large cap altcoins like Chainlink will still be dependent on Bitcoin's ability to stay propped up. If it does, there are strong signs that patient hodlers will be rewarded in the long-term.