Since Bitcoin price broke out of slow consolidation below $40,000, market participants have viewed the rally as the start of a bull run. This also filled them with a lot of optimism and positive feelings, allowing the BTC price rally to mark a new ATH very close to $74,000. This caused a notable drop in price, which shook sentiments, which fell from extremely greedy to as low as neutral.
Second, the markets again remained relatively stable until the ETH price surpassed $3700, which pushed the BTC price about $72,000. But before the levels marked the crucial resistance at $4000 and $72,500, the bears regained dominance again and are restricting further rise. This uncertain market behavior may have made traders pessimistic about the upcoming price action and as a result, stablecoin accumulation has started slowly.
He Santiment data hints at the possibility of another crypto market pullback as traders have begun accumulating USDCoin and Tether. The non-empty stablecoin wallet has shown a steady rise, with USDCoin wallets soaring 13.9% and USDT 15.7% in 2024. Stablecoin adoption has been a key metric to track the behavior and mindset of traders, and the figures above suggest traders may be losing faith in the rally.
In such cases, markets may face a pullback after each small rally, as has been happening since the beginning of the year. After the accumulation peaks, markets are expected to pull back, which may force prices of major tokens like Bitcoin and Ethereum to lose most of their gains. However, the accumulation of stablecoins is still in the early stages and therefore, only after it reaches certain levels, validation of the pullback is expected.
