What are the reasons behind today’s crypto market decline? Insights from Matrixport and other FUD.
The cryptocurrency market experienced a sudden drop shortly after the release of the Matrixport report on January 3rd. However, data suggests that investors are optimistic that this could be a temporary low point.
According to CoinGecko, the global market capitalization of cryptocurrencies has decreased by 4.8% in the past 24 hours, currently standing at around $1.73 trillion. This represents a decline of $70 billion.
On the other hand, CoinGecko data reveals that the global trading volume of cryptocurrencies has surged by 95% in the past day, increasing from $94 billion to $183 billion.
The decline in the overall market came after Matrixport published an analysis stating that the U.S. Securities and Exchange Commission (SEC) is expected to reject all Bitcoin exchange-traded fund (ETF) applications this month.
Within just three hours of the Matrixport report, the price of Bitcoin dropped by 10%, falling from approximately $45,500 to $40,800. However, the leading cryptocurrency experienced a significant correction and is currently trading at around $43,000.
According to Santiment, there was a slight increase in social media activity surrounding the term “sell” after the Matrixport announcement. However, as the market corrected itself, this activity has subsided.
Santiment’s data also reveals a notable increase in the usage of the terms “buy” and “bullish” in global cryptocurrency conversations on social platforms, accounting for 3.3% and 0.5% respectively.
Furthermore, there has been a significant rise in calls to “buy the dip” over the past 24 hours. On average, more than 37% of social media activity related to the crypto ecosystem includes this term.
Reddit and X are the main sources of bullish signals, according to Santiment, while Telegram and 4chan also contribute to a smaller extent.
In conclusion, the Matrixport report had an immediate impact on the crypto market, causing a decline in prices. However, investors remain optimistic, as indicated by the increase in bullish sentiment and the surge in trading volume.
