BTC rose to $62.2K as soon as the US Federal Reserve slashed interest rates, thus, people are interested in cryptocurrencies again.
Public mood is gradually shifting to a standard predictor of Bitcoin when it comes to its price and direction in the market.
The other cryptocurrencies, altcoins, are expected to mirror the performance of Bitcoin with the rest of the cryptocurrency market driven by the path set by the leading cryptocurrency.
Rising in parallel with the dollar, cryptocurrencies have received an upswing after the U. S. Federal Reserve cut interest rates for the first time since March 2020. Bitcoin which is the most popular cryptocurrency by market capitalization rose to $62.2K and this was after the prices had been oscillating for several months. This recent rate cut has sparked activities again in the crypto space and social media collective conscience.
The Influence of Social Sentiment on Price Changes
While the price of Bitcoin continues to oscillate, the morale of the crowd is inevitably transforming into the deciding factor of what the market will look like in the future. Experts are monitoring the reaction from the public on social media especially with regards to the levels that Bitcoin may reach. Moreover, it is noteworthy that different price ranges are thought to mean the varying level of the investor’s fear, neutrality or greed.
https://twitter.com/santimentfeed/status/1836656352334352779
When the price of Bitcoin is between $50K and $59K, it is an indication of fear and this is usually a bear market. On the other hand, discussions of Bitcoin within the $60, 000 to $69, 000 price level have a neutral connotation, which may make the market volatile. In the case of discussions that are directed to the Bitcoin price within the range of $70K-$79K, the analysts will be likely to describe it as greed and possibly the top.
Bitcoin’s Recent Surge and in the Altcoin Market
Bitcoin has recently surged back above $60K once again, which has signaled a more positive sentiment in the crypto ecosystem. But, experts are advising investors to be careful since the price is likely to stabilize at some point in the future. It is therefore expected that the future movement of Bitcoin will primarily depend on the sentiment and behavior of market participants once its price is established.
Small celebrations are expected in the short-term but analysts will focus on social media to determine if the market will sustain its growth or possibly experience a decline.Other cryptocurrencies such as altcoins are also responding to the Fed’s rate cut and the changing sentiment. The direction of these smaller assets remains pegged to Bitcoin’s performance therefore any major movements in Bitcoin can affect the altcoin market.
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