The cryptocurrency market is ending a turbulent week as the leading cryptocurrency, Bitcoin ($BTC), fell below the critical $60,000 support level.
According to data from the analytics platform Santiment, Bitcoin is struggling to hold just above this psychological threshold, having experienced a weekly drop of approximately 4.6%. However, the price occasionally falling below $60,000 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 Bitcoin’s price 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 initiate legal proceedings following the sharp decline in MicroStrategy (MSTR) and Strategy (STRC) stock. Allegedly, Saylor and his company:
- By making Bitcoin investments appear much more profitable than they actually are,
- By failing to adequately warn investors about the new accounting rules and the massive paper losses that Bitcoin’s high volatility could bring,
- He is accused of making misleading statements that violated US securities laws.
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Santiment analysts noted that this anger within the community could be a “scapegoat search” (FUD) stemming from the market downturn, and that the issue was one of the top 3 most talked-about 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 holding 0.01 $BTC or less have increased their share of the total Bitcoin supply by 1% in the last 7 weeks. Although “$50,000” scenarios are being discussed on social media, small investors are viewing every dip as a buying opportunity.
- The large, institutional wallets holding between 10 and 10,000 $BTC, which are the main drivers of the market, have sold off approximately 43,241 $BTC in the last 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 small investors panicking and big whales buying at the bottom. But right now, the opposite is happening; small investors are buying while big wallets are selling. This selling pressure from big wallets worries me quite a bit.”
In addition, projects such as Decentraland (MANA), Chainlink (LINK), Immutable X (IMX), and Shiba Inu (SHIB) also saw the highest active address and whale transfer activity in the last 90 days.
*This is not investment advice.
