Several social measures imply that the cryptocurrency’s boom could be ended soon.
Bitcoin is trading at $63,219, down 0.09% in the last 24 hours as per data from CMC.
Bitcoin has had a really good ten days or so, with the asset adding about $10,000 during this span, largely due to the US Federal Reserve’s move to lower key interest rates. But several social measures imply that the cryptocurrency’s boom could be ended soon.
Last week on Wednesday, September 11, after the release of the US CPI figures, the price of bitcoin fell precipitously. The asset’s value plummeted to $55,500 throughout that period. But when talk of the Federal Reserve’s next action persisted, it launched an onslaught in the days that followed.
A week later, following the lead of the European Central Bank (ECB), the Bank of Canada (BoC), and the Bank of England (BOE), the US Federal Reserve decided to reverse its four-year monetary policy and cut interest rates.
Correction Likely on the Cards
Following the expected short-term volatility in Bitcoin and other markets, the cryptocurrency responded positively, rallying from $59,500 to a three-week high of $64,000, a gain of about $5,000. However, the asset’s ascent has halted for the time being, and it is presently trading at around $63,000.
According to data from Santiment, social media activities may lead to an even more dramatic retracement after this cooling. This week, the degree of FOMO (Fear of Missing Out) reached its fourth highest point since the beginning of the year. Following such large price gains, as occurred following March’s ATH and the early June and late July rallies, corrections are commonplace.
According to Santiment, the cryptocurrency market is especially vulnerable to these kinds of responses, and it usually goes in the other way. At the time of writing, Bitcoin is trading at $63,219, down 0.09% in the last 24 hours as per data from CMC.
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