The cryptocurrency market ends a turbulent week as the main cryptocurrency, Bitcoin ($BTC), fell below the critical support level of $60,000.
According to data from the Santiment analysis platform, Bitcoin is struggling to stay just above this psychological threshold, after experiencing a weekly decline of around 4.6%. However, the price dropping below $60,000 at times has fueled bearish sentiment on social media.
Following the sharp market downturn, the community is targeting Michael Saylor and his company MicroStrategy (now Strategy), who hold a massive amount of Bitcoin. The fact that the price of Bitcoin has lost more than 50% of its value since its peak of $126,000 in October has exhausted investors’ patience.
Shareholders and law firms are preparing to take legal action following the sharp decline in MicroStrategy (MSTR) and Strategy (STRC) shares. Apparently, Saylor and company:
- By making Bitcoin investments appear much more profitable than they actually are,
- By failing to adequately warn investors of the new accounting rules and the massive paper losses that the high volatility of Bitcoin could cause,
- He is accused of making misleading statements that violated U.S. securities laws.
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Santiment analysts noted that this anger within the community could be “scapegoating” (FUD) stemming from the market downturn, and that the topic was one of the top three most discussed topics on social media throughout the week.
The on-chain charts shared by Santiment reveal a rather interesting and risky paradox in the market:
- Small wallets containing 0.01 $BTC or less have increased their share of the total Bitcoin supply by 1% over the past 7 weeks. Although “$50,000” scenarios are discussed on social media, small investors view every dip as a buying opportunity.
- Large institutional portfolios holding between 10 and 10,000 $BTCwhich are the main drivers of the market, have sold around 43,241 $BTC over the past 7 weeks. The decrease in these wallets, especially in the last 10 days, reached 48,000 $BTC.
Santiment analysts issued the following warnings regarding the current situation:
“Normally, the scenario we want to see in the market is one of small investors panicking and large whales buying low. But right now, the opposite is happening: small investors are buying while large portfolios are selling. This selling pressure from large portfolios worries me a little.”
Additionally, projects such as Decentraland (MANA), Chainlink (LINK), Immutable X (IMX), and Shiba Inu (SHIB) have also seen the highest active address and whale transfer activity over the past 90 days.
*This does not constitute investment advice.