An analytics firm suggested that Bitcoin might be heading to another bull market as the hype around meme coins starts to fade and the crypto community regains its interest in the flagship crypto and other top Layer-1 protocols.

Santiment acknowledged that the crypto community’s shift to Bitcoin could indicate market maturity, creating renewed optimism in the broader digital assets market.

Shifting Attention To Bitcoin

Data giant Santiment observed that the cryptocurrency sector has once again turned its attention to Bitcoin in the last few weeks as the meme coin frenzies waned.

“The crypto community has largely shifted their attention to Bitcoin and other Layer 1 assets like Ethereum, Solana, Toncoin, and Cardano,” Santiment said in a post.

The analytics firms noted that social discussions on Bitcoin and other Layer-1 protocols are on the rise, overtaking discussions on meme coins, which have been the talk of the crypto space for some time.

😀 The crypto community has largely shifted their attention to Bitcoin and other Layer 1 assets like Ethereum, Solana, Toncoin, and Cardano. Collectively, the top Layer 1 assets are getting 44.2% of discussions among specific coins. Meanwhile, top meme coins like Dogecoin, Shiba… pic.twitter.com/PpBjD9vSi4

— Santiment (@santimentfeed) February 10, 2025

“Collectively, the top Layer 1 assets are getting 44% of discussions among specific coins. Meanwhile, top meme coins like Dogecoin, Shiba Inu, and Pepe are being discussed less and less across social media,” Santiment said.

The data giant attributed this shift to the “recent volatility, and speculative altcoin price dominance falling behind.”

More Stable, Sustainable Market

Santiment explained that investors’ shift of attention from meme coins to Bitcoin and Layer 1 only indicates “a more stable and sustainable market environment.”

“Meme coins tend to attract speculative enthusiasm, often driven by hype, viral trends, and a gambling mindset rather than fundamental value. When these assets dominate discussions, it typically signals a phase of excess greed, where traders chase rapid, short-term gains without considering long-term viability,” the analytics firm said.

Sanitment called Bitcoin and other Layer-1 protocols the “foundational infrastructure of the crypto space,” believing that the crypto community’s increased attention to these assets often reflects a “more mature and informed approach” by the crypto community.

The data giant added that it also means that the community wants to prioritize “security, innovation, and real-world adoption.”

“Layer 1 blockchains support smart contracts, decentralized applications, and network scalability—key drivers of long-term growth in the industry,” the analytics firm said.

Healthier Market Cycle

The analytics firms suggested that the investors’ regained attention towards Bitcoin and away from meme coin proves that the crypto community is more inclined to sustainability.

“When traders pivot back to assets with strong utility and established market positions, it suggests a healthier market cycle. This shift encourages a more balanced ecosystem, reducing the risk of unsustainable price surges and crashes fueled purely by speculative mania,” Santiment said.

As of this writing, Bitcoin is being traded at $97,825 per coin, up 0.2% in the last 24 hours. Its total market capitalization is nearly $2 trillion.

Featured image from Avira, chart from TradingView

The price of Bitcoin is gradually retaining its upward trend as the flagship asset eyes the $100,000 pivotal mark after a slight rebound on Monday. During the waning price performances over the past few days, recent data shows that BTC’s funding rates have persistently maintained a bullish sentiment.

BTC’s Funding Rates Defies Market Dip

Bitcoin has faced bearish pressure over the past few days, causing its price to retest the $94,000 range. Despite the notable price drop, funding rates across several crypto exchanges remain positive. 

Alphratcal, an advanced investment and data analytics firm reported the development in an X post. Data from the platform shows that Bitcoin’s aggregated funding rates have sustained a bullish trend among 11 crypto exchanges, signaling that traders are maintaining an optimistic sentiment. 

Simply put, more traders are placing leveraged long-term bets on BTC than short-term bets as they anticipate a price recovery. This implies that long-term investors are covering the funding fees, which are assessed every 8 hours, while short-term investors are being paid.

An increase in long-term positions showcases investors’ robust confidence in BTC’s long-term potential. Should this positive trend continue, the development might spur renewed momentum in the upcoming days, allowing the asset to reclaim key resistance levels.

According to Alphractal, Bitfinex (BTC-USDT) has the highest funding rate at the moment, while BitMEX (XBTUSD) and OKX (BTC-USD-SWAP) are the only two crypto exchanges with negative funding rates. The gap suggests that traders have different opinions about the market across different platforms.

Addressing what the development could mean for Bitcoin, Alphractal stated that if the funding rate stays positive, it can be a sign of overconfidence and the possibility of liquidation should BTC’s price continue to fall. However, it can indicate a more bearish market for BTC where short positions dominate if the rate turns negative across the board.

In the meantime, Alphractal highlighted that most exchanges still display positive funding rates as they maintain an overall average above zero. Specifically, maintaining an overall average above zero suggests that the market is not yet generally bearish even though it has declined.

Coinbase Premium Index Turns Green

Another metric that has turned positive amid waning price movements is the Coinbase Premium Index. A rise in the metric demonstrates renewed confidence and demand in BTC among US institutional investors.

Related Reading: Bitcoin Coinbase Premium Index Flips Positive As Market Euphoria Increases, A Rally Imminent?

Since the index turned positive, it has impacted BTC positively, causing a rebound from the $94,000 mark to the $97,000 level. However, the flagship asset must recover above $100,000 in order to establish prolonged upward momentum.

At the time of writing, Bitcoin has fallen by over 2%, bringing its price to the $97,400 level. With investors’ sentiment rising as evidenced by a nearly 84% increase, the drop may shift toward the upside shortly.

Featured image from Unsplash, chart from Tradingview.com

The state of North Carolina has become the latest to introduce a bill allowing the investment of public funds in digital assets like Bitcoin (BTC). 

House Bill 92, also known as the “Digital Assets Investments Act,” was introduced on Monday. The bill is sponsored by Representative Destin Hall, along with Representatives Mark Brody and Steve Ross.

North Carolina Pushes Bitcoin Bill

The bill grants North Carolina’s State Treasurer the authority to allocate state funds to digital assets while adhering to strict security, management, and oversight criteria.

“Investing in digital assets like Bitcoin not only has the potential to generate positive yields for our state investment fund but also positions North Carolina as a leader in technological adoption & innovation,” Hall said in a statement.

The legislation defines “digital assets” as virtual currencies, cryptocurrencies, stablecoins, nonfungible tokens (NFTs), or any other digital assets that confer economic, proprietary, or access rights. 

“The average market capitalization of the digital assets over the preceding 12 months is at least seven hundred fifty billion dollars ($750,000,000,000), as determined by the State Treasurer using a commercially reasonable method,” the bill specifies.

Bitcoin is the only cryptocurrency meeting the bill’s $750 billion market capitalization threshold. As per BeInCrypto, Bitcoin’s market cap stands at $1.95 trillion. In contrast, Ethereum (ETH), the second-largest cryptocurrency, falls short at $327.57 billion.

Beyond direct investments, the bill permits the State Treasurer to invest in digital asset exchange-traded products (ETPs). These must be listed or authorized for listing on reputable exchanges such as the New York Stock Exchange (NYSE) or NASDAQ and comply with rigorous security standards.

The bill also places limits on investment exposure. The total amount allocated to digital assets cannot exceed 10% of the fund’s balance at the time of investment. 

Furthermore, the State Treasurer is authorized to invest in over 30 special funds, including retirement systems, health plans, and other designated funds, ensuring investments align with each fund’s specific purposes and needs.

“NC has ~$9.6 billion in Reserve funds, and has $127 billion in its retirement systems. This translates to an investible amount of ~$13.7 billion,” Bitcoin Laws revealed on X (formerly Twitter).

North Carolina is not alone in exploring Bitcoin investments. Florida has also introduced its second bill, House Bill 487, to allocate 10% of public funds to Bitcoin. 

Meanwhile, more than 20 states are actively working on similar Strategic Bitcoin Reserve legislation. Among these, Utah stands out as the most advanced. The bill has passed the state house and is now under consideration in the state senate. Arizona follows closely, with its bill having passed the committee.