- Altcoins suffer from SEC’s lawsuit, boosting interest in Bitcoin and Ethereum as safe havens.
- Bitcoin and Ethereum dominance increases, and traders show more optimism towards ETH.
Altcoins such as Solana [SOL], Cardano [ADA], and Polygon [MATIC] have experienced significant price impacts due to the SEC’s lawsuit against Coinbase and Binance. The SEC categorizing these cryptocurrencies as securities created widespread FUD in the crypto markets.
As a result, investors are turning to Bitcoin [BTC] and Ethereum [ETH] as safe havens for their funds, leading to increased interest in these established cryptocurrencies.
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CryptoQuants data revealed that SEC-designated securities continued to witness substantial price declines compared to BTC and ETH. Over the past few days, there has been a significant decoupling of the altcoins and Bitcoin+Ethereum assets, indicating a diminishing interest in altcoins among traders.
Source: CryptoQuant
The market dominance of BTC and ETH also saw a substantial surge in recent days due to the unstable market conditions caused by the SEC’s actions. At the time of writing, these two cryptocurrencies collectively held a commanding 91.4% share of the overall crypto market.
Interest in BTC rises
An indicator of the growing interest in Bitcoin is the rising number of Bitcoin holders. Glassnode’s data showed that the amount of HODLed coins reached a five-year high of 7,749,322.716 BTC. Additionally, there has been a noticeable accumulation by the whales. This was evident from the increasing number of addresses holding more than 1 Bitcoin.
📈 #Bitcoin $BTC Number of Addresses Holding 1+ Coins just reached an ATH of 1,005,787
View metric:https://t.co/s7tx1xxyz3 pic.twitter.com/ePfVClRH7r
— glassnode alerts (@glassnodealerts) June 10, 2023
Despite the prevailing FUD, traders have remained interested in Bitcoin. Open interest in Bitcoin continued to surge in recent weeks. The sentiment among traders remained divided, with an equal number of long and short positions placed against BTC across all exchanges.
Source: Coinglass
State of ETH
Similar to Bitcoin, Ethereum also witnessed growing interest. Glassnode’s data indicated a rise in the number of non-zero addresses accumulating ETH. At press time, a significant portion of these addresses was not profitable, suggesting low selling pressure from these holders at the moment.
📉 #Ethereum $ETH Number of Addresses in Profit (7d MA) just reached a 1-month low of 59,431,738.333
View metric:https://t.co/9t2b8JZ83s pic.twitter.com/EQd672ugLY
— glassnode alerts (@glassnodealerts) June 12, 2023
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Trader behavior revealed a high level of optimism regarding the future of Ethereum, as evidenced by the declining put-to-call ratio for ETH. This number stood at 0.37 at the time of writing. This ratio indicated that the number of put options taken against ETH stood significantly less than the call options, thus indicating that traders expect ETH’s price to go up.
Source: The Block