The cryptocurrency market displays significant profitability for the majority of investors due to Bitcoin and several altcoins. Santiment's analysis emphasizes the importance of caution at this stage.
Investor Profitability in Bitcoin and Altcoins
According to Santiment data, 98.4% of traders remain profitable from Bitcoin investments, while 98.3% of retail investors and major whale investors also benefit from XRP. Furthermore, Ethereum (ETH), Dogecoin (DOGE), Cardano (ADA), and Chainlink (LINK) also show high percentages of profitable investors at 71.5%, 77.9%, 71.0%, and 80.5% respectively.
The Nature of 'Zero-Sum' in Cryptocurrency Game
Santiment highlights that cryptocurrencies operate as a 'zero-sum' game, where profit from one participant means loss for another. This dynamic leads investors to seek profit realizations, which may contribute to price declines.
Risk Analysis Regarding Trump's Statements
According to Santiment's research, investors often act contrary to the crowd's expectations. For instance, Bitcoin's fluctuations after Trump's tariff threats observed a recovery. However, caution remains a crucial aspect, as instability in traditional finance may impact cryptocurrencies.
The cryptocurrency market showcases significant volatility, highlighting the need for cautious investment decisions, especially in light of external economic factors.
