Are Bitcoin Whales Starting to Experience FOMO? This new data suggests…
– Bitcoin whales started to accumulate after a distribution period.
– Short positions taken against BTC started to rise, despite bullish behavior shown by retail investors.
At the time when there was a surge in retail interest in Bitcoin, BTC whales were noted to be distributing their holdings. However, after a short pause, the same whales began to collect the royal coin. And at press time they were showing signs of FOMO (Fear of Missing Out).
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This was demonstrated by Santiment’s data, consider this – addresses with 1000 to 10,000 BTC seemed to show interest in buying Bitcoin.
Now, it is crucial to be alert and watch for signs of FOMO as the market undergoes changes. Identifying FOMO can help market participants choose between two potential strategies: either follow the trend and choose “long” positions in the short term, or take a short or medium-term bet on “short” positions by going against the crowd.
Signs of FOMO include a noticeable increase in retail investment, a decrease in stablecoin holdings, and a sudden increase in overall network activity.
Source: Sentiment
Distrust is increasing
However, there may be other reasons why addresses accumulate BTC. According to analyst Will Clemente from Reflexivity Research, there has been a significant decline in trust in the US government in recent years.
To reduce the real value of the debt, the US government can choose to expand amount of money. However, this strategy can have unintended consequences that can worsen inequality and further undermine trust in the authorities.
According to Will, this distrust of the government could help increase Bitcoin adoption.
Source: PEW Research Center
Traders show interest
As for traders’ behavior, it was observed that open interest in Bitcoin started to rise, at press time. On exchanges such as Bitfinex, open interest in BTC reached a 9-month high $143.49 million.
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High open interest in BTC can also significantly affect the cryptocurrency’s price movements by indicating a high level of market activity and a large number of traders speculating on the future price of BTC.
This increase in volatility can be beneficial for traders, but can also increase risk and uncertainty for investors.
According to the latest data from coinglass, the number of short positions taken on BTC has grown.
Source: coinglass
