Recent market data points to a possible beginning of the altcoin season, despite concerning signals raised by experts from Santiment.
Cryptocurrency Market Hits New High
Recently, Bitcoin reached an all-time high of over $118,000. Against this backdrop, most leading cryptocurrencies outperformed Bitcoin in price performance over the past seven days.
Altcoins vs. Bitcoin
According to data, the largest Ethereum wallets (holding 10,000 ETH or more) collectively own 75.74% of the coin's total supply, marking the highest level of concentration among wallets since May 2017. This is considered a 'powerful bullish signal.' Additionally, the number of XRP wallets holding more than 1 million coins has reached an all-time high of 2,743.
Caution Amid Positive Signals
Despite the positive trends, experts warn of the need for caution. The MVRV metric for Bitcoin is one of the alarming signals,as its market price to realized value ratio has already surpassed the levels seen in May. There is also an observation that the extremely optimistic sentiment regarding Ethereum may indicate a short-term price peak is approaching.
Experts agree that while signs of an altcoin season are evident, the current conditions warrant caution, especially in light of the observed top trends and market metrics.
