STOCKS TELEGRAPH

Tag: Santiment.com

  • Bitcoin (BTC) data reveals hinderances for price recovery

    Bitcoin (BTC) data reveals hinderances for price recovery

    The market crash rocked and shocked the investment world. In a frenzy, last week the social volume of Bitcoin broke the record high in the 2017-18 bull run. The increasing mentions of Bitcoin on social media indicated a spike in interest which can be then translated into acceptance and adoption. However, as expected, the social volume of Bitcoin dropped to normal levels after the peak.

    The community chatter indicates a bearish bias in the market for Bitcoin – which may not be such a bad thing. Historical trends suggest that it is a highly bullish sentiment with high price levels that result in an increased consolidation period for cryptocurrencies. Thus, the price of Bitcoin and other cryptocurrencies may be expected to gradually recover over the course of the next few days.

    The social data from the sentiment analytics’ platform suggest that Bitcoin may be in undervalued conditions. A price recovery may be seen soon. In the derivatives market, the funding rate – fee paid for perpetual contracts – have hovered either neutral or negative. A negative funding rate means Bitcoin short traders are paying Bitcoin long traders – a bearish bias. The negative funding rate has also coincided with Bitcoin’s price recovery in the past.

    However, there are factors hindering the price recovery of Bitcoin as well. Bitcoin’s Daily Active Addresses (DAA) have stayed above 1 million for a while with the level becoming an unofficial threshold. Bitcoin’s Daily Active Addresses have stayed below the threshold level in the lower half of May.

    After a short-lived upward stint of Bitcoin, the movements of BTC whales have also disappeared. Since the ATH of Bitcoin, the holdings of 100-10k BTTC addresses have fallen drastically by nearly $4.14 billion. Moreover, Bitcoin moving to exchanges have also declined slightly.

  • Is the market crash the downfall of Bitcoin?

    Is the market crash the downfall of Bitcoin?

    The cryptocurrency market crashed brutally. It all started when Tesla denounced the use of Bitcoin as a mode of payment for electric cars. The CEO Elon Musk had been a strong advocate of cryptocurrencies so the sharp turn in his stance resulted in bearish divergence in the market. The crash had been further fueled by a Chinese financial committee’s report which said to launch a crackdown on cryptocurrency mining. The crypto market took another hard hit after the news as China is accountable for a good proportion of Bitcoin mining.

    However, is the crash really bad for the cryptocurrency market? The bull run had bought the cryptocurrencies and blockchain technology under the limelight. Corporate behemoths, governments, small retailers, and innovative startups have all accepted the technology because of its many use cases.

    Sentiment data from a report published by Santiment.com – a sentiment data analytics platform –reveals that the crash may not be as bad for the acceptance of cryptocurrencies worldwide. The weekly report revealed that interest in cryptocurrencies had been increasing.

    The social volume of Bitcoin had shot up drastically in the bear market. Interestingly, the social volume also exceeded the record high of the 2017 bull run. The data indicates growth in the cryptocurrency sphere. Mentions of the “bear market” had also increased drastically – which is to be expected.

    Despite the bearish outlook of the market, the general sentiment for Bitcoin had stayed positive. With the “buy the dip” mantra, investors are positive that Bitcoin and other cryptocurrencies will eventually pick back up. It is also the positive sentiment that usually leads to crashes as the market becomes overheated and fear of corrections overtake. Bitcoin did see a shift in sentiment to the negative side after the Chinese Financial Committees report.