Society trend data from online chain analysis firm Santiment suggests that most traders believe the cryptocurrency has officially entered a bear market. A bear market refers to a prolonged price decline that is characterized by a sharp decline from recent highs amid widespread pessimistic and negative investor sentiment.
📊 Our social trend data confirms that the trading crowd feels very #crypto be an official #bearmarket. Mid-May is the last time #bearish this very common sentiment, it is a very promising sign that the weak are giving in. https://t.co/Xyuw1L5fRB pic.twitter.com/Uz882URRla
– Santiment (@santimentfeed) January 10, 2022
This follows last week’s drop, with Bitcoin dropping to as low as $40,505 on Jan. 8. Bitcoin is currently down 10.58% over the past seven days, according to CoinMarketCap data.
The majority of altcoin tokens are also down over the past seven days, with some recorded losses ranging from 10% to 30%. However, tokens like Chainlink (LINK, +31.14%), Cosmos (ATOM, +6.11%) and Internet Computer (ICP, +34.97%) are up weekly.
The crypto market rally on January 5 along with the stock market minutes after the December meeting of the US Federal Reserve suggests that the central bank could raise interest rates as soon as this March. . Additionally, a nationwide internet outage to quell unrest in Kazakhstan, the second-largest country for Bitcoin mining, has forced local miners to shut down their equipment.
This is a positive sign
After the market decline, the Crypto Fear & Greed index remains in the extreme fear zone, reaching 23 points out of 100.
According to Santiment, the last time such bearish sentiment was prevalent was in mid-May 2021 when Bitcoin hit a low of $30,000 after falling from a high of $64,899.
The online analytics firm notes that the prevalence of a broad-based downtrend could be a very promising sign that the weak are giving in. It noted that previous spikes in the “bear market” led to short-term gains until the FUD (Fear, Uncertainty, Doubt) stopped.
Cryptocurrency Analyst Lark Davis jokingly hinted at impending buying pressure on Bitcoin amid rising inflation. January 12 (Wednesday) will see the release of new statistics, where, according to Crypto Lark, inflation is expected to hit a high of 7.1%. Rising inflation is beneficial for Bitcoin, as it acts as a hedge against inflation.
Bitcoin trades at $41,898 at press time.
Follow u.today