New data from market intelligence firm Santiment suggests that four major trends are currently driving the crypto market.
The cryptocurrency analysis platform said in a new blog post that optimism centered on Bitcoin (BTC) and XRP drove the industry in October, while developments on Reddit and the Federal Reserve caused concern. Ta.
The U.S. Securities and Exchange Commission (SEC) has dropped charges against Ripple executives Brad Garlinghouse and Chris Larsen as the crypto king reaches $30,000 twice in one week, Santiment said. This has brought new bullish sentiment to the market.
” [BTC’s] The $30,000 range is typically celebratory, so you'll find it overlaps with high FOMO (fear of missing out) emotions. We would prefer the crowd not to get too excited about Bitcoin's realization as Bitcoin price is about to break through resistance levels in the long term. Large spikes usually indicate the best signal of excessive enthusiasm in the crowd.
The lively discussion about the success of the Ripple/XRP lawsuit may already be showing a bit of the “buy the rumor, sell the news” aspect. XRP rose +10% yesterday when insiders were first informed of the news. And now that the jump explanation has become mainstream, XRP will not be secondarily cut off from the market (at least not yet). ”
Santiment said he sees more bearish developments in the market, including the inability of Reddit users to tip other community members through MOON and DONUT, and the hawkish stance expressed by the Federal Reserve. is causing investor concern, he said.
However, the analyst firm noted that the Fed's stance only makes sense if the crypto market moves in line with the S&P 500 again, adding that such a scenario is likely.
“The active discussion related to the suspension of token chip exchange on Reddit may be a mild reflection of FUD (Fear, Uncertainty, and Doubt) in the crypto market as a whole, and could have a positive impact on prices.” Keep an eye out for a flurry of negative posts in the final days before MOON and DONUT chips are officially removed on November 8th.
The controversy surrounding Mr. Powell and the concerns expressed by the Fed about the overall US economy will only impact cryptocurrencies if the sector starts tracking the S&P 500 again. Currently, the price of virtual currency is trending at roughly the same level as the value of gold, but this may be an effect of the war.
But don't be surprised if the sectors start trading together again. This means that negative news from the Fed could lead to a spike in crypto prices, as was seen throughout 2022 and early 2023. ”
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