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Santiment: Crypto Market Prices Are Going Up and Down Because of This

Wed, 10/12/2022 - 23:49
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Wahid Pessarlay
The crypto market price direction has been curiously getting dictated by social platforms’ sentiment in October according to Santiment
Santiment: Crypto Market Prices Are Going Up and Down Because of This
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Crypto market behavior analysis platform Santiment pointed out new data that ties the pendulous price action of the crypto market to sentiments on social platforms. In a tweet, Santiment stated that in October, price directions have been dictated by bullish and bearish calls on social platforms despite long-term sentiments being negative. 

In particular, prices have moved in the opposite direction of the social media crowd's sentiment. The data highlights Oct. 7, when a high number of bearish calls were followed by a price bounce in the market, and Oct. 8 and 11 when bullish social sentiments were followed by price drops.

The data is not surprising as market sentiment has been noted to have a strong effect on crypto, as Santiment data shows. Although they usually follow the pattern of bullish sentiments triggering fear of missing out (FOMO) that leads to price spikes, bearish sentiments lead to fear, uncertainty and doubt (FUD), which is accompanied by dips.

Could Bitcoin be poised for a price surge based on the trend?

With the reversal of the roles the sentiments play in the market, Bitcoin (BTC) might be poised for a surge. At present, the Bitcoin fear and greed index which measures market sentiment is at a reading of extreme fear — in the strong bearish territory — per data

While the general market sentiment is bearish, some observers have continued to remain bullish on BTC. BTC is trading at around $19,160, up 0.61% in the last 25 hours according to data from CoinMarketCap at the time of this writing.

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About the author

Wahid is an experienced writer, interested in everything decentralized since 2019.

Before joining U.Today, he wrote for some of the top DeFi and CeFi outlets, bringing in millions of views and educating readers with his knowledge of the industry.