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Crypto Social Volumes Declined After Midweek Volatility

Published 2023-04-28, 06:45 a/m
© Reuters.  Crypto Social Volumes Declined After Midweek Volatility

Coin Edition -

  • Santiment data shows a declining trend in social volumes across cryptocurrencies.
  • Bitcoin, Radix, and Render constitute the few cryptos with positive social metrics in the past week.
  • Bitcoin’s price closed above the opening price for the third consecutive day despite recent volatility.

According to data from Santiment, the market intelligence platform with on-chain social metrics, there is a declining trend in social volume across cryptocurrencies. Recent data shows most cryptocurrencies on the platform returning negative weekly social metrics with only a few standouts.

Bitcoin, Radix, and Render constitute the few cryptocurrencies whose social metrics remained positive in the past seven days. Despite the volatility of the crypto market in the past week, Santiment data showed Bitcoin’s price maintained a +4% gain, Radix +16%, and Render +22%. However, the overall return in the past week for several other crypto assets was negative.

The crypto market experienced heightened volatility within the week after the emergence of rumors about the U.S. government selling off confiscated crypto assets. In just a few hours, Bitcoin’s price dropped by almost $3,000 and rebounded almost immediately.

The sudden volatility caused the liquidation of up to $175 million worth of futures positions across several exchanges, wiping out $1 billion in open interest. There is a corresponding drop in social metrics, as the volatility appears to have dampened users’ interest by liquidating many positions and could have wiped out the trading capital of several users.

Santiment’s data indicated the positive social metrics of Bitcoin and a few other cryptos suggest a gradual return of user interest and the availability of pump opportunities in the crypto market. As of the time of writing, Bitcoin’s price has closed above the opening price for the third consecutive day, trading at $29,500 and sitting above a significant support level. Positive market sentiment could see the price retest and possibly return above the $30,000 psychological level.

Santiment is a platform that provides market data, insights, and analytics for the cryptocurrency market. It employs a variety of tools, including monitoring social media interactions to predict the crypto market.

The post Crypto Social Volumes Declined After Midweek Volatility appeared first on Coin Edition.

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