Cryptocurrency analytics firm Santiment has released a market analysis following the latest U.S. Consumer Price Index (CPI) data, highlighting significant activity from Bitcoin whales and a potential sentiment shift in the memecoin sector. The report indicates that Bitcoin's retest of the $70,000 level has fueled optimism that the recent market correction may be concluding.
This recovery was catalyzed by macroeconomic news, specifically the U.S. CPI reading of 2.4%, which came in below expectations and repriced market forecasts for interest rate cuts. In the 24 hours following the data release, Bitcoin surged over 5%, reclaiming the $68,000 level and beginning to test the $70,000 resistance. Santiment notes that such rallies, triggered by macro news, typically require confirmation in the following trading sessions.
On-chain data reveals aggressive accumulation by large holders. Whale addresses holding between 10 and 10,000 BTC have accumulated over 18,000 BTC in the last four days, ending a period of stagnation. Despite this, Santiment cautions that aggressive buying by retail investors during dips has historically posed a risk, as markets often move contrary to crowd expectations. A key metric, Bitcoin's MVRV (Market Value to Realized Value), remains at -29%, suggesting the market is still in a low-risk accumulation zone with prices relatively low compared to the average investor cost basis.
The report also provides a contrarian outlook on the memecoin sector. Santiment observes that the pervasive market perception that "the memecoin era is over" is strengthening, with many investors declaring the sector dead. The firm suggests this collective acceptance could signal classic capitulation, often a precursor to a reversal. Data shows the ratio of bullish to bearish opinions for memecoins is below 1, indicating more negative sentiment than positive. This lack of confidence, despite price increases, is historically viewed as a sign of a healthier, more sustainable recovery.
In a related development, the memecoin Floki (FLOKI) has seen a notable 12% price surge, rising from a support level of $0.00003 to $0.0000359. The rally was supported by a 135% increase in trading volume to $70.9 million. On-chain metrics show aggressive spot accumulation, with a positive Buy Sell Delta of 23 billion tokens over four days. Whale buy volume also spiked to 203.4 billion, and top holder addresses increased their net holdings, adding 57.56 billion FLOKI tokens while selling only 33.8 billion. Technical indicators like the Relative Strength Index (RSI) rising from 31 to 47 and a cross above the EMA20 suggest strengthening bullish momentum, though sustainability depends on holding key support levels.
