New data from market intelligence firm Santiment suggests that four major trends are currently driving the crypto markets.
In a new blog post, the crypto analytics platform says that optimism centered around Bitcoin (BTC) and XRP are driving the industry in October, while developments with Reddit and the Federal Reserve are causing concern.
According to Santiment, the king crypto hitting $30,000 twice in one week and the U.S. Securities and Exchange Commission (SEC) dropping its charges against Ripple executives Brad Garlinghouse and Chris Larsen has brought new bullish sentiment to the markets.
“High discussions of the [BTC’s] $30,000 range are typically going to be celebratory, therefore you’ll see it overlapping with high FOMO (fear of missing out) sentiment. When Bitcoin’s price is trying to penetrate a resistance level for the long-term, we will prefer to see the crowd less hyped about it coming to fruition. Major spikes will usually be indicative of a top signal due to the crowd’s over-eagerness.
High discussions of the Ripple/XRP lawsuit win may already showing a bit of ‘buy the rumor, sell the news’ aspect to it. Yesterday, XRP jumped +10% when insiders were first notified of this news. And now that the explanation for the jump has hit the mainstream, XRP isn’t seeing any secondary decouplings from the market (at least not yet).”
Looking at the more bearish developments in the market, Santiment says that Reddit users losing the ability to tip other community members through MOON and DONUT, along with a hawkish stance expressed by the Federal Reserve is causing concern for investors.
However, the analytics firm notes that the Fed’s stance is only relevant if the crypto markets couple with the S&P 500 again, adding that such a scenario is likely.
“High discussions related to Reddit discontinuing its token tipping will likely be a mild reflection of overall crypto market FUD (fear, uncertainty and doubt), which could have a positive impact on prices. Watch to see if there is a wave of negative posts in the final days leading up to the official removal of MOON and DONUT tipping on November 8th.
High discussions related to Powell and the overall US economic concerns expressed by the Fed will only impact crypto if the cryptocurrency sector begins following the S&P 500 again. Right now, crypto’s prices are trading closely with the value of gold, which could be an attribution of the war.
But don’t be surprised if we begin seeing the sectors trading together again, which would mean negative news coming from the Fed can lead to crypto price tops as we saw throughout 2022 and early 2023.”
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- Source: https://dailyhodl.com/2023/10/22/bitcoin-xrp-and-two-other-trends-are-driving-the-crypto-markets-right-now-according-to-analytics-firm-santiment/
