Crypto analytics platform, Santiment, has something new to say about bitcoin. Their latest idea about the entire crypto market is that bitcoin may just be at a “good bottom.”
Santiment is one of the leading crypto analytics platforms that track the activities of the top 2000 cryptocurrencies in the market based on chain data and market sentiment. Recently, they have said that Bitcoin’s recent social dominance suggests that its price may be approaching its bottom.
In a tweet today, Sentiment notes that Bitcoin’s dip saw a surge in its “negative comments” reach a 30-day high. They also add that shorting on crypto exchanges has halted its price’s bleeding, marking a spike in its social dominance. All of which are historically good bottom signals.
Bitcoin’s Price after Fed Rate Increase
Bitcoin confused a lot of traders after the FED rate hike this week. Its price fluctuated around the $19,600 mark, liquidating a lot of traders before hitting a three-month low.
According to Jerome Powell, chairman of the FED, the United States central bank will continue to raise this rate until inflation decreases to 2%.
Right after Powell’s comments, the price of bitcoin and several other assets across stocks, indices, and cryptocurrencies began to plummet. Bitcoin’s price dropped to a 24-hour low of $18,262 after this.
Powell insists that hiking the interest rates is the most suitable way to mitigate US inflation’s effects and push the inflation volume down to the 2% mark.
He also adds that while everyone is expecting 75 basis points to the range of 3% – 3.25%, the real concern should be about the terminal rates in the long term.
Effect of the Rate Hike on Crypto
This constant hike in interest rates has negatively impacted the value of several assets, including cryptocurrencies.
However, Mike Novogratz, the CEO of Galaxy Digital, has expressed confidence that bitcoin, Ethereum, and other altcoins will “win” if the FED eventually reverses its interest rates.
However, the long-term effects of this increase in FED rates on bitcoin and other cryptocurrencies are still under speculation by the crypto community at large.
Further increases by the FED may lead to greater dips in bitcoin prices. Some crypto community members have expressed expectations for its price to go as low as $14,000 – $11,000 in the coming months.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)