Santiment analyst says Bitcoin health remains crucial factor for Altcoin rally

Brian from Santiment recently appeared on Thinking about the latest episode of Cryptowhere he shared his views on the manifestation of altcoins. Brian talked about the top 50 meme coins by market capitalization and stated that Dogecoin appears to be dead, while Shiba Inu has shown little change over the past 30 days. Some of the biggest gainers include MAGA (up 178%), Pepe (up 70%), and Floki (up 73%).

Brian confirmed that social volume changes and price changes are critical indicators. While most coins saw price increases, some fell. Social volume is especially important for speculative sectors such as meme coins. Mentions of Dogecoin have decreased, while Pepe is being talked about more than double compared to last month, which could lead to further volatility.

The host then said that Bitcoin is seeing an increase in ETF inflows again, with interest from major players such as BlackRock and Fidelity. Bitcoin is trying to move higher to reach a new all-time high, although it is currently retreating a bit.

Reacting to the same, Brian said that whether you are trading in meme coins, artificial intelligence, or any other sector, the health of Bitcoin is crucial. If Bitcoin collapses, other coins will likely follow suit. Conversely, if Bitcoin reaches a new all-time high and moves towards $80,000, other altcoins would also benefit.

A key metric for Bitcoin is the activity of whale wallets, particularly those holding 10 to 10,000 BTC, which account for about two-thirds of the supply. These wallets can indicate the direction of the price of Bitcoin. However, the recent consolidation of Mt. Gox trustee-related portfolios has distorted this data. Now, looking at wallets that hold 10 or more BTC, there is a clearer picture: as these wallets accumulate, the price tends to increase, and as they are distributed, the price tends to become more volatile.

Since late 2023, the accumulation of BTC by these large wallets has been steady, leading to price increases. However, since the end of May, a slight decrease in accumulation has been observed, causing some concern. Moving forward to the last four years, a similar decline was observed starting in February 2022, which preceded a difficult year for cryptocurrencies due to rising interest rates and other factors. Despite these fluctuations, accumulation has resumed since the beginning of 2023, leading to a four-fold increase The price of Bitcoinwhich is significant.

Read also: Shiba Inu community nears 10,000 signatures on ETF SHIB petition

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