Sunday, June 16, 2024

Bitcoin Bullish Signal Amid Rising Fear, Says Crypto Analytics Firm

Santiment Reveals Bullish Signs for Bitcoin (BTC) Amidst Rising Fear and Positive Chainlink (LINK) Accumulation

In a recent analysis, crypto analytics platform Santiment has shed light on some key metrics that indicate a potential rally for Bitcoin (BTC) in the near future. The firm has observed a dominant discussion trend surrounding Bitcoin on social media platforms following the Federal Open Market Committee’s (FOMC) 0.25% rate hike, which seems to come at the expense of other crypto assets. According to Santiment, this increased social dominance suggests “fear” and could potentially trigger an upward movement in Bitcoin’s price.

Bitcoin’s Social Dominance Signals Potential Price Rise:

Santiment’s research points out that the ratio of discussions related to Bitcoin compared to other top 100 assets has surged following the recent FOMC rate hike and Bitcoin’s flirtation with the $30,000 price level once again. This heightened social dominance is often an indicator of fear, which in turn raises the likelihood of a price surge for the flagship cryptocurrency.

Decrease in Bitcoin Supply on Exchanges:

Additionally, Santiment highlights another positive sign for Bitcoin as its supply on exchanges has dwindled to a 55-month low. This trend indicates that more holders are moving their Bitcoin into self custody, suggesting a higher level of confidence among investors. Despite a drop below the $30,000 threshold last week, the lack of severe reactions or panic selling (fear, uncertainty, and doubt – FUD) reinforces the belief in the longevity of Bitcoin’s value. As of now, there are approximately 1.17 million BTC on exchanges, the lowest amount seen since November 2018.

Chainlink (LINK) Whales Accumulating:

Shifting focus to the 22nd-largest crypto asset by market cap, Chainlink (LINK), Santiment reports a remarkable surge in whale accumulation. Notably, Chainlink has outperformed other altcoins on Thursday, with its price movement fueled by heavy accumulation from prominent investors. The data reveals an increased number of transactions valued at $1 million or more this year. Moreover, wallets holding 100,000 to 10 million LINK are rapidly accumulating, further substantiating the positive momentum for the crypto asset.

Current Trading Status:

At the time of writing, Bitcoin is trading at $29,218, reflecting the prevailing market conditions and ongoing developments in the cryptocurrency space.

The analysis conducted by Santiment provides valuable insights into the current state of Bitcoin and Chainlink, revealing optimistic signs for both cryptocurrencies. As Bitcoin’s social dominance indicates fear and decreased supply on exchanges, the potential for a price rise becomes more pronounced. Meanwhile, Chainlink’s impressive accumulation by whales showcases strong investor confidence in the altcoin. However, as the crypto market is highly volatile, it is essential to stay updated on the latest developments and conduct thorough research before making any investment decisions.

Read Also: French Authorities Launch Investigation into Worldcoin (WLD) Shortly After Record-Breaking Two Million Sign-Ups

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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