Bitcoin Near Bottom, XRP Signals Strong Rebound

Cryptocurrency analysis platform Santiment has shared critical signals regarding the Bitcoin and altcoin markets in its new analysis evaluating recent market developments and on-chain data.

According to Santiment analysts, Bitcoin's 365-day MVRV (Market Value, Realized Value) ratio falling to -26% indicates that long-term investors are significantly at a loss. Historically, this level of MVRV corresponds to periods when long-term risk decreases and the search for a bottom strengthens.

On-chain data reveals significant differences in investor behavior based on wallet size. Whale wallets holding between 10 and 10,000 BTC continued their accumulation trend, adding approximately 18,500 BTC to their wallets in the last 10 days. On the other hand, smaller wallet holders (individual investors) continue to buy the dips; however, analysts warn that this high buying appetite on the individual side could occasionally create a risk of a final 'shakeout' or correction in the market.

The altcoin market presents a mixed picture. Ethereum's 365-day MVRV is hovering around -33%, but the recovery over the past month, coupled with overly optimistic investor sentiment on social media, carries the risk of a short-term correction. XRP, on the other hand, is in the oversold zone with a 30-day MVRV of -57.5% and a 365-day MVRV of -45.5%, signaling a strong rebound in the medium to long term.

The future direction of Bitcoin and altcoins is being determined not only by on-chain metrics but also by macroeconomic and legal developments, such as the Federal Reserve's interest rate decision and upcoming policies.