A crypto analytics firm says traders have become “optimistic” on Bitcoin and a pair of large-cap altcoins.
Santiment is detailing a breakdown of trader’s sentiment on specific large-cap crypto assets.
The company’s analysis shows that starting on approximately March 10th, traders began to see upside potential for BTC, as well as the payments asset XRP and Binance Coin (BNB), which is the native token of the crypto exchange Binance and the core crypto asset of Binance Smart Chain.
In addition, the company calls out Polkadot (DOT) as a crypto asset with specifically negative sentiment among traders.
“A comparison of crypto’s top assets by market cap reveals Bitcoin, XRP and Binance Coin are showing signs of traders expecting price rises.
Meanwhile, Polkadot is one of the few top caps where trader sentiment is more negative than usual.”
Looking back, Santiment says two Ethereum (ETH) rivals have taken volume away from Bitcoin (BTC) in the last 12 months.
The firm says that the Ethereum competitors Terra (LUNA) and Solana (SOL) have exponentially grown in volume as both crypto assets registered all-time highs over the past year.
“The past year has seen major changes in trading interest. It’s been well documented that LUNA and SOL have emerged into the top 10 market cap assets with very high volume. But this has come at the expense of BTC and ETH seeing their volume drop off.”
Although Bitcoin has seen its volume decline in the past months, Santiment says that traders still The optimism among Bitcoin traders comes as fellow intelligence firm Glassnode reports a rise in the amount of BTC that’s being transferred to owners who tend to hold their coins for the long haul.
“Illiquid BTC supply represents coins held in wallets with little to no history of spending. It is now 3.2x larger than liquid and highly liquid supply combined.”
According to Glassnode, the illiquid supply shock ratio (ISSR) is a metric that attempts to predict the probability of supply shock forming, where fewer coins are available to meet current demand trends.
When large amounts of coins move out of liquid circulation, the ISSR trends higher indicating the possibility of BTC price rally if supply dwindles.
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