Bitcoin [BTC] can be considered one of the worst hit tokens since Ethereum [ETH] merger last week. The token even fell to its three-month low since last week, when it plummeted below $18,500. However, at the time of writing, BTC was enjoying a major uptrend as the price surged 4.7% to $19,400. Although BTC is back above $19,400, sentiment around BTC looks negative.
According to Santiment, social trends have taken a major turn in the last week. Cryptocurrencies like ETH and Cardano [ADA] have seen a massive uptick related to their respective upgrades.
However, one of the casualties of this narrative was bitcoin as it saw a sharp 17.5% drop in social volume. Historically, a higher social trend has always appreciated bitcoin’s prices, at least in the short term.
📉 #Cryptomarkets have obviously taken a big hit over the past week, but it’s interesting to see where societal interests have shifted. $ETH, $XRP, $ADA, $MATIC, and $SHIB have seen increased discussion, while most other assets are far less discussed. https://t.co/B461oasvSr pic.twitter.com/c6FVIS90gG
— Santiment (@santimentfeed) September 19, 2022
One of the key bearish remarks for Bitcoin is the waning of “buy the dip” calls in the market. As Santiment reported, traders used to “brag” about buying the dip, but the situation has since changed. The update also claimed that there is a “polarization” in the market.
Source: Santiment
Out of the blue? Not really!
As previously reported, the sell-off in the market was expected following strong coin inflows on the exchanges. Between September 7th and September 14th, 1.69 million BTC worth $33.5 billion were sent to exchanges. According to Santiment, this was the highest volume of BTC moved since October 2021.
However, another factor is beginning to open the cracks in Bitcoin. According to a recent Glassnode update, the median transaction volume (7d MA) just hit a two-year low of $469.39. This showed a decreasing trend around Bitcoin preference in the crypto market. For any major upsurge in wealth, there is now an urgent need for Bitcoin to increase in volume.
Source: Glassnode
Additionally, crypto enthusiast and co-founder of Reflexivity Research, Will Clemente, provided a long overdue bullish update for the bitcoin community. He explained that despite a sharp 60% price drop since last year, 65% of Bitcoin’s supply hasn’t moved over the same period.
This has further spurred sentiment towards Bitcoin to contain the bearish influences. This means that long-term BTC holders still believe in the token as they have yet to exit their positions.
Source: Will Clemente/ Twitter
Perhaps the biggest mystery in the crypto market right now is the future of Bitcoin.
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