Bitcoin Its price managed to rise above $43,000 with a slight increase in the last 24 hours. While the market value approached $850 billion, the selling pressure from ETFs did not negatively affect the overall outlook.
An on-chain analysis shared by Santiment shows that the debate surrounding Bitcoin has undergone a significant transformation from historical patterns and points to changing market sentiments.
As Koinfinans.com has reported, traditionally, the high rate of discussions focusing on Bitcoin indicates a sign of fear. However, Santiment notes that the narrative has changed since mid-2023. The enthusiasm and optimism surrounding Exchange Traded Funds (ETFs) for BTC has turned the narrative on its head, turning the loud discussions into a display of greed. This shift is due to unrealistic expectations regarding market performance following ETF approvals.
Following the SEC’s approval of Bitcoin ETFs three weeks ago, Santiment is observing a normalization in this indicator. However, the analysis also points to a potential risk. If the high discussions about altcoins in the first week of February surpass those about BTC, there is a risk of pushing the BTC discussion rate into a bearish “unhealthy” zone.
Santiment also pointed out that Bitcoin ETFs attracted a significant amount of trading volume despite recent declines. In terms of volume, $ARKB remains the leader, followed closely by $FBTC. In particular, there has been a decline in volume of the long-standing Grayscale Bitcoin Trust GBTC, while flows towards other funds have been inevitable.
Bitcoin Options Data
According to Greeks.Live data, approximately 22,000 BTC options will expire today, February 2, with a Put Call Ratio of 0.66. While its maximum pain point is $42,000, it has a significant notional value of $960 million, adding importance to the upcoming options expiration.
The cryptocurrency market exhibited relative stability throughout the week, with bearish trends for both major terms RV (Realized Volatility) and IV (Implied Volatility). One notable development is the influx of increasing capital into the crypto market via Bitcoin spot ETFs, signaling a shift as grayscale selling slows.