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BitcoinSistemi 2025-02-11 08:40:09

Investor Interest Has Shifted to Bitcoin and These Altcoins Lately! What Does It Mean for BTC and Cryptocurrencies?

Bitcoin and altcoins are showing signs of recovery after the sharp declines they experienced. While investors are wondering which cryptocurrencies they are turning to, on-chain analytics platform Santiment shared its latest analysis. Accordingly, Santiment stated that investors' interest has shifted from memecoins to Bitcoin (BTC), Ethereum (ETH) and other first-layer altcoins. Santiment’s social sentiment tracking tool showed that Bitcoin, Ethereum, and layer 1 blockchains dominated 44% of discussions on social media, while the six largest memecoins accounted for 4%. He said the shift in investors' focus from memecoins to Bitcoin and other altcoins could mean a “more stable and sustainable market environment” for Bitcoin. Santiment said the reason for this change is likely due to the volatility and speculative price dominance experienced in altcoins being left behind. “Memecoins tend to attract speculative enthusiasm, often driven by hype, viral trends, and a gambling mentality rather than fundamental value. When these assets dominate discussions, it usually signals a phase of extreme greed, where traders chase quick, short-term gains without considering long-term viability. In contrast, the shift in trader interest from memecoins to Bitcoin and Layer 1 assets is generally a sign of a more stable and sustainable market environment. These are key drivers of long-term growth in the sector.” Santiment also said that cycles dominated by memecoins usually mark a phase where investors chase short-term gains and are preceded by market corrections where excitement fades. “Historically, memecoin crazes and speculative excesses often precede market corrections, as they lead to sharp reversals. “When traders return to underlying assets like Bitcoin, this indicates a healthier market cycle. This shift reduces the risk of unsustainable price appreciation and collapse.” Memecoin activity surged after US President Donald Trump launched his memecoin, with Pump.fun usage reaching an all-time high of $3.3 billion in weekly trading volume. https://twitter.com/santimentfeed/status/1889065568101413148 *This is not investment advice. Continue Reading: Investor Interest Has Shifted to Bitcoin and These Altcoins Lately! What Does It Mean for BTC and Cryptocurrencies?

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