Social metrics indicate the crypto community isn’t embracing the latest market rebound, according to the analytics firm Santiment.
Santiment reports that the frequency of “sell” mentions on Twitter, Reddit and Discord has hit a two-month high despite the recent modest price increases for Bitcoin (BTC) and most of the crypto market.
Says the analytics firm,
“What happens when crypto prices keep rising despite the crowd’s disbelief that the trend can continue? A perfect storm of FUD that can propel market caps to continue rebounding.”
BTC is trading at $23,893 at time of writing. The top-ranked crypto asset by market cap is up more than 3% in the past 24 hours and more than 4.5% in the past seven days.
Santiment also notes that Bitcoin spent most of 2022 tightly correlated with the S&P 500 but has recently fallen behind the stock index’s recovery. The firm says decoupling has historically been bullish for BTC.
Additionally, Santiment notes that the ratio of top stablecoin Tether (USDT) on exchanges has surged from 19.7% on May 9th to 42.0% currently.
Explains the analytics firm,
“This can be viewed as both a signal that traders have taken profits as prices have rebounded, as well as a sign of a two-year high in buying power.”
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