The cryptocurrency market has experienced a decline in social volume, according to data from Santiment, a market intelligence platform that tracks on-chain social metrics. The majority of cryptocurrencies on the platform have returned negative weekly social metrics, with only a few exceptions. Bitcoin, Radix, and Render are among the few cryptocurrencies whose social metrics remained positive in the past seven days. Despite the market’s volatility, Bitcoin’s price maintained a +4% gain, Radix +16%, and Render +22%. However, several other crypto assets’ overall return in the past week was negative.
The crypto market experienced heightened volatility within the week after rumors emerged 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. As a result, there has been 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 that 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 declining trend in social volume across cryptocurrencies is a cause for concern, but the positive social metrics of Bitcoin and a few other cryptos suggest that there is still hope for the market. It remains to be seen how the market will perform in the coming weeks, but investors and traders should remain cautious and vigilant.