Rich by Coin

The digital asset market, which started the year with optimism, is slowing into the latter half of the second week, with prices generally edging higher but signals of overheating suggesting a potential near-term pullback. Santiment’s latest weekly analysis suggests that for the uptrend to continue, a further reset could be required. Bitcoin extended its rally after breaking a long price compression, briefly reaching about $94,400, an advance the firm attributes to a reset in a market where profit-taking pressure has eased.

End-of-year realized profits fell to around $183.8 million per day, easing selling pressure, while long-term holders’ realized gains slowed and distribution pressure diminished, helping to stabilize prices. Nevertheless, despite the rise in prices, retail panic selling has been scarce, which remains a potential warning sign in a market where meaningful corrections are often accompanied by trend-fast selling by smaller investors. On-chain metrics show small holders with 0–0.01 BTC balances largely unchanged and realized losses remaining relatively muted against prior low points, suggesting overheating relief may not yet be complete.

Ethereum has seen notable activity growth since the latest network upgrade, with daily new addresses up more than 110% to roughly 292,000, among the highest levels in a decade. This rapid growth signals long-term ecosystem expansion, but history shows that such surges can precede near-term softening; social mentions have also risen, reflecting enthusiasm around staking and future participation. The data point to near-term risks for meme coins, with assets like PEPE losing momentum as price outpaces network activity, while Solana has shown price and network metrics moving in tandem even as broader market cooling persists; ETF-driven speculation has also injected volatility. Santiment’s analysts emphasize a cautious stance, recommending patience and risk management with a focus on weekly on-chain trends rather than chasing headlines, viewing the market as a mix of long-term structural strength and short-term overheating warnings.