BTC and ETH Holders See Profits Amid Price Recovery; is there any reason to worry

The global cryptocurrency market capitalization fell to $2.07 trillion, dropping as much as 6% in the past 24 hours. Bitcoin plunged nearly 5% the day before. Down from above $47,000 Thursday to around $45,000 early Friday. While Ethereum, the largest altcoin, saw another 4% correction in 24 hours. At press time, it was trading below the $3.3,000 mark.

So what comes next? Fear? Loss of return on investment?

The grass is greener than you think

First, let’s talk about the fear factor. The fear and greed index (which analyzes emotions and feelings from different sources) was 50. This was a plus neutral feeling at all levels.

Next, Bitcoin and Ethereum holders appear to be taking profits as both saw trading spikes at their peak a few days ago. The insight given analyzes whether trades are made while a position is in profit or loss. According to data from Santiment, there were 3 times more profit trades than loss trades for the first time since November.

Source: Saniment

To put this into perspective or rather provide support, one could also use the information from IntoTheBlock. Speaking of Bitcoin, 71% of BTC holders made huge gains while 28% suffered losses. In contrast, 80% of ETH holders seen profits against only 18% who suffered a loss.

A widely followed crypto strategist has charted Bitcoin (BTC) and Ethereum (ETH) trajectories in different tweets. He expected a rise from $51,000 to $53,000 for the top cryptocurrency. Indeed, the Luna Foundation Group acquire more BTC would trigger this growth.

Pseudonymous crypto analyst Pentoshi had this to say,

The trader then weighed in on ETH’s prognosis following a recent hack of over $600 million in Ethereum’s sidechain Ronin Network. The trader thought the hack was a good omen. The price of the second largest crypto asset by market capitalization could move on and push it past the $3,600 level.

I personally believe this is a bullish hack. Seen as the $ETH was sent to FTX. Think 36xx coming in a few days.

This story is illustrated in the graphic below.

Source: Twitter