Santiment analyst says Bitcoins health remains crucial factor for altcoin rally as Dogecoin is declared dead and Pepe is hotly debated
Brian from Santiment recently made an appearance on the latest episode of Thinking Crypto, where he discussed the ongoing altcoin rally. During the conversation, Brian highlighted the performance of the top 50 meme coins by market cap, noting that Dogecoin appears to be losing momentum, while Shiba Inu has remained relatively stable over the past month. Notable gainers included MAGA (up 178%), Pepe (up 70%), and Floki (up 73%).
Brian emphasized the importance of monitoring social volume changes and price fluctuations as key indicators in the crypto market. While many coins have experienced price surges, there have also been some declines. Social volume, in particular, plays a crucial role in speculative sectors like meme coins. For example, mentions of Dogecoin have decreased, whereas conversations about Pepe have more than doubled compared to the previous month, potentially signaling increased volatility.
The discussion then shifted to Bitcoin, which is currently witnessing a resurgence in ETF inflows, with major players like BlackRock and Fidelity showing interest. Bitcoin is striving to break its previous all-time high, although it is currently experiencing a slight pullback.
In response, Brian stressed the significance of Bitcoin’s overall health, regardless of whether one is trading meme coins, AI, or any other sector. He noted that if Bitcoin were to experience a significant decline, other coins would likely follow suit. Conversely, if Bitcoin were to achieve a new all-time high and move towards $80,000, it would benefit other altcoins as well.
A crucial metric for Bitcoin is the activity of whale wallets, particularly those holding 10 to 10,000 BTC, which represent a significant portion of the supply. These wallets can provide insights into the direction of Bitcoin’s price movements. However, recent consolidation of wallets linked to the Mt. Gox trustee has skewed this data. By focusing on wallets holding 10 or more BTC, a clearer trend emerges: accumulation tends to drive prices up, while distribution leads to increased volatility.
While large wallets have been steadily accumulating BTC since the end of 2023, there has been a slight decrease in accumulation since late May, causing some concern. A similar decline was observed in February 2022, preceding a challenging year for the crypto market due to various factors. Despite these fluctuations, accumulation has resumed since the beginning of 2023, resulting in a substantial fourfold increase in Bitcoin’s price.
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