Cryptocurrency analytics agency Santiment Reports a rise in “buy-on-low” sentiment in the cryptocurrency space. Enthusiasm and positivity in the market is starting to prevail despite or perhaps thanks to the latest round of price drops.
Since September 18, the price of . has decreased Bitcoin by 7% or more, and reached its lowest levels in June. The price of Ethereum, which has come under additional pressure from the events surrounding the move to Proof of Stake, dropped to $1,300, offsetting nearly all of the merger hype growth.
In her report, Santiment appeals to similar sentiments, which existed just a week ago, prior to the CPI report. After that, many of these bullish participants were severely punished by the immediate fall of the crypto market by almost 10%. Now opinions are divided, but the feeling of finding a new bottom has not gone away.
What is the Fed rate?
Ahead of the Federal Open Market Committee meeting on Wednesday, the Federal Reserve is in a spasm. Although markets are only expecting a 0.75% rise, after the last Fed Chairman’s speech, a 1% hike is also possible.
On the other hand, given the situation with US debt, as well as the looming liquidity crisis, the regulator cannot afford to raise too harshly.
There is also an alternative view that the Fed will face a violent reaction to its tight monetary policy towards the end of the year.
In any case, as long as the cryptocurrency market is closely correlated with the near-recession US economy, any speculation about a possible bottom seems meaningless.
Follow | Al-Nahda News _ Hossam Mohamed