The crypto market underwent a significant downturn shortly following the release of the Matrixport analysis on January 3. Despite the decline, indicators suggest investors are interpreting this as a potential bottom.
As per CoinGecko data, the global crypto market cap endured a 4.8% drop in the last 24 hours, reaching approximately $1.73 trillion, marking a substantial $70 billion reduction. Simultaneously, the 24-hour trading volume surged by 95%, escalating from $94 billion to $183 billion.
The widespread downturn ensued after Matrixport’s report asserted an anticipated rejection of all Bitcoin (BTC) exchange-traded fund (ETF) applications by the U.S. Securities and Exchange Commission (SEC) this month.
Within three hours of the report’s publication, Bitcoin tumbled by 10%, plummeting from roughly $45,500 to $40,800. However, the flagship cryptocurrency underwent a notable correction and is presently trading around $43,000.
Santiment’s data indicates a slight upsurge in social media mentions of “sell” following the Matrixport announcement, but as the market adjusts, this activity seems to be tapering off.
In contrast, keywords like “buy” and “bullish” have experienced a noteworthy increase, constituting 3.3% and 0.5% of global crypto conversations on social platforms. Notably, the phrase “buy the dip” has gained significant traction, with over 37% of social activity across the crypto sphere featuring this term.
Analysis from Santiment suggests that Reddit and X are the primary sources of bullish signals, with smaller contributions from Telegram and 4chan. Despite the recent decline, the surge in buy-the-dip sentiments indicates a prevalent optimism among investors.
Powered by Crypto Expert BD
Follow us on Twitter: https://x.com/CryptoExpert_BD
Join our Telegram channel: https://t.me/CryptoExpert_BD
