Because of this, investor sentiment towards altcoins is mixed.
With cryptocurrency prices moving quickly in unexpected directions, it’s no surprise that investor sentiment is in turmoil. In fact, even bitcoin’s momentum versus altcoins appears to be volatile as sentiment becomes increasingly fragmented.
Mood in the market
Taking bitcoin price into account, Santiment’s positive/negative sentiment data for BTC, ETH, BNB and ADA shows more clearly how traders in different regions are reacting to the recent events.
Positive/negative mood | The source: San base
While Bitcoin sentiment is positive and ETH, BNB, and ADA are showing negative sentiment, it is important to note that sentiment for ETH has surged in January 2022.
On the other hand, the latest data is updated around January 20, 2022. Therefore, it remains to be seen how ETH’s 10.7% drop over the past 24 hours will affect investor sentiment.
📊 Given the high volatility, the perceptions of various top cap assets are omnipresent. #Bitcoin Traders believe a #buythedip Opportunity is near, and #Ether Euphoria is very palpable. in the meantime #Cardano and #BinanceCoin dealer show #FUD. https://t.co/cq1DPa9URH pic.twitter.com/5XvMQWQMQw
— Santiment (@santimentfeed) January 19, 2022
“With volatility rise, which will raise awareness of high-cap investments chaotic. Bitcoin traders believe a buying opportunity for a decline is approaching and the excitement in ETH is noteworthy. ADA and BNB traders are now involved shows FUD”.
Hence, ADA and BNB traders are feeling uneasy as sentiment is deep in negative territory. Furthermore, this sentiment was also noted before BNB fell 11.9% and ADA fell 10.1% over the past 24 hours.
At the time of writing, Bitcoin has fallen below $40,000 and is trading at $35,683. Meanwhile, the market fell into a state of extreme anxiety.
On the other hand, it is not surprising that BTC investors are calling for “buy the dip”.
Santiment has previously addressed the social dominance of orders for those planning to buy or already buying the dip. However, the analytics platform noted that most went long before hitting bottom. Now, it will be some time before the data reveals whether dip buyers have jumped in at the right time.
A look at the net flow balance on a bitcoin exchange can also show what investors are up to. So far in 2022, there has been a sharp surge in outflows, which could signal people to buy the dip. However, at the time of writing, there are signs of an inflow of funds. Again, more time is needed to confirm whether the recent drop has brought new dip buyers.
Flow balance on exchange | The source: mood
More than just a winter break
Cryptocurrency watchers are a little excited as El Salvador’s President Nayib Bukele arrives visit Turkish President Recep Tayyip Erdogan. Although the Wall Street Journal confirm Cryptocurrency is not a topic of discussion, many still hope that the President of El Salvador (who is supposed to buy Bitcoin from his phone) will discuss the issue with Erdogan. Bukele also introduced his country in Turkish as “the country of bitcoin”.
— Nayib Bukele (@nayibbukele) January 19, 2022
It is worth noting that Bukele announced on Twitter that he will not buy the dip if the bitcoin price is above $41,000.
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