Since 2023 began, Bitcoin ($BTC) and Ethereum ($ETH) have for the first time ever shown negative net position changes, with a combined total of -$3 billion over the past three days.
This trend marks a pivotal moment for the two flagship cryptocurrencies, as their movement is supposedly indicative of a new phase in investor behavior and sentiment. In what is supposed to be leading us into 2024, recent downturns aside, the crypto space in general and Bitcoin’s grail-like prospects in particular seem less and less affected by the naysayers who keep saying this space is living on borrowed time.
For the first time since 2023, #Bitcoin $BTC and #Ethereum $ETH show negative net position changes, totaling -$3 billion over the last three days. pic.twitter.com/XOO7x01Opd
— Ali (@ali_charts) March 21, 2025
Bitcoin Sentiment Takes a Negative Turn
In the past week, there has been a significant drop in the on-exchange balance of Bitcoin. Around 10,000 BTC have been moved off of exchanges. This is one of the signs—I would certainly consider it a major sign—of growing investor confidence. It seems our long-term holder base keeps on increasing as more and more SATs are taken off exchanges and stowed away for safekeeping.
Around 10,000 #Bitcoin $BTC were moved off exchanges this week! Often a sign of growing investor confidence and long-term holding behavior. pic.twitter.com/8pH3uuVART
— Ali (@ali_charts) March 21, 2025
But even as this sign was coming to light, or perhaps because this sign was coming to light, the vibe in the market has taken a turn for the worse.
Bitcoin’s all-time high (ATH) last year sent investors into a state of euphoria and pushed the price of the cryptocurrency to levels that had never been seen before. Yet, in the aftermath of the ATH, unease has set in. It is now many seem to view (and vote) with a more cautious tilt toward the future of Bitcoin. This sea change in sentiment toward the world’s largest cryptocurrency can be seen in the Bitcoin Sentiment Vote—up or down. The current quarterly sentiment ratio now has Bitcoin back at the levels seen last September. It was last September when the price of Bitcoin was considered by many to be much too low. We all know what happened after that.
After reaching its all-time high (ATH), investors and traders began to take a predominantly negative view of Bitcoin’s future prospects. This is clearly reflected in the Bitcoin Sentiment Vote – Up or Down chart.
Currently, the quarterly sentiment ratio has returned to levels… pic.twitter.com/UKGgm113iB
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) March 21, 2025
Regardless of the dip in sentiment, Bitcoin is still a bastion for long-term holders. These holders have not gone anywhere. It is almost ironic that these secure storage places (i.e. by the holders) should function as the kinds of Bitcoin-adopting silos that the Bitcoin community once fretted about. Anyway, that’s how things have played out. Para-masochism here has gone along with a public mental health en-route to Bitcoin.
Ethereum Follows Bitcoin’s Negative Sentiment
The second-largest cryptocurrency by market capitalization, Ethereum is experiencing a change in investor outlook. The negative net-position change for Ethereum—an amount that indicates a substantial loss over the last three days—underscores the increasing caution around the two leading digital assets. We’ve seen large movements in liquidity for both Bitcoin and Ethereum, but Ethereum’s market sentiment is trending toward bearishness.
Different factors have impacted the outlook of Ethereum’s future, not least its recent move to proof-of-stake (PoS) consensus with the Ethereum 2.0 upgrade. While this may have largely been taken as a given and something supposedly to be priced into Ethereum by now, the transition has yet to positively impact the ratio of Ethereum to Bitcoin, let alone catapult any significant amount of capital into Ethereum’s market cap. Moreover, the reasons for pricing Ethereum more positively in relation to Bitcoin remain unconvincing.
Even with these difficulties, Ethereum—and Bitcoin, for that matter—remains in the good graces of a solid, loyal base of investors. The