Santiment Reveals Unusually High Rate of Negative Crypto Market Vibes
- Santiment has observed a consistent surge of negative sentiment towards the crypto market.
- The bulk of these negative comments come from Twitter.
- Traders can use this data to their advantage to predict market rebounds.
Santiment, a market intelligence platform that relies on on-chain data and social metrics, has detected a continuing high level of pessimism within the crypto industry. In a tweet Santiment mentioned that it was hard to tell the cause of the extreme amount of FUD it had noticed.
Unusually high levels of #crypto-related negativity have been observed on #FridayTwitter. It is tough to understand what might be behind the #FUD at @santimentfeed. Read We are thinking! https://t.co/b9Z3LGtDVr pic.twitter.com/17lZ6bF95X
— Santiment (@santimentfeed) March 5, 2023
Santiment’s social analysis has revealed that the majority of the negative sentiment in the crypto space is originating from Twitter. A lot of crypto tweets appear to be bearish, indicating that most crypto investors are not optimistic about the future of the sector.
Users are using words to generate fear and panic in the crypto market, this is according to Santiment. It was observed that #cryptocrash was the most used hashtag even before the 5% price drop on Friday.
Santiment’s in-house crypto market analyst, Brianq, thinks that this overwhelming negativity might give rise to a nice bounce to silence critics. He encouraged traders to focus on funding rates, as there is potential for inflation, and suggested that they should not be sure whether they should long or short the markets at this point.
Many social media users commented on Santiment’s original post that the negative sentiment might be connected to the Silvergate crisis and the SEC’s recent decision to classify all altcoins as securities.
This article was first published on Coin Edition.
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