XRP and DOGE Take the Lead in Market Gains with Bitcoin Falling Below $58K
Bitcoin (BTC) and other major cryptocurrencies, like ether, experienced minimal changes in their values recently. While most tokens remained stable, XRP and dogecoin stood out with positive movements, particularly XRP, which saw an increase attributed to the launch of a new fund by Grayscale.
Over the past week, Bitcoin has seen a rise of over 6%, potentially marking its first weekly gain in three weeks. Despite this positive trend, there has been a noticeable decline in transactions involving amounts over $100,000. Bitcoin experienced a 33.6% drop in such transactions, while ethereum saw a more significant decrease of 72.5% since reaching their peak earlier this year.
In the last 24 hours, BTC, ether (ETH), Solana’s SOL, BNB Chain’s BNB, and Cardano’s ADA all saw slight declines of just under 1%, according to CoinGecko data. In contrast, XRP and dogecoin (DOGE) were the only major tokens that showed significant gains, climbing 5% and 4.5%, respectively. The CoinDesk 20 index, which tracks the largest tokens by market capitalization, rose by 0.85%.
XRP’s upward trajectory began on Thursday following the introduction of a professional fund by Grayscale that includes the token in the U.S. On the other hand, there was no clear catalyst identified for the rise in dogecoin’s value.
Despite the lack of significant movement in the past day, Bitcoin has demonstrated a noteworthy increase of more than 6% over the week, positioning it for its most substantial one-week gain since the week ending August 25, when it surged by 10%.
Santiment, an on-chain analysis tool, highlighted a sharp decline in activity by whales, referring to large holders of specific cryptocurrencies, over the past month. This decrease suggests that influential market participants are waiting for a decisive signal before making significant capital deployments.
The data from Santiment also revealed that transfers of Bitcoin exceeding $100,000 have decreased by 33.6% since reaching a peak in March and April. Ether experienced a more substantial decline of 72.5% from its peak in April.
Santiment noted that the reduced whale activity does not necessarily indicate a bearish market sentiment, as whales can be active in both bull and bear markets. However, it does signify that major stakeholders are patiently observing the market dynamics to make strategic moves during periods of heightened market sentiment.
The firm also pointed out that sentiment patterns suggest a potential return to $70K could lead to significant FOMO (fear of missing out) among investors, while a drop to $45K might trigger widespread FUD (fear, uncertainty, and doubt) in the market.
