According to Santiment. Bitcoin (BTC), saw a spike in interest over the weekend on social media platforms, which led to its social dominance increasing.
The crypto insight provider explained:
“A spike in Bitcoin interest on social platforms came this weekend. There are many. crypto’s BTC, the top 100 assets, is the topic of 26%+ discussions for the first-time since mid July. Our back testing shows 20%+ dedicated to Bitcoin is a positive for the sector.”
The top cryptocurrency trading is below the psychological price $20,000. This is why there has been renewed interest in Bitcoin. CoinMarketCap reported that BTC was trading at $19,038 per day during intraday trades.
Bitcoin is trading at a level that is significantly lower than its all time high (ATH), $69,000 in November 2018. The Federal Reserve (Fed) increased interest rates in 2022 to create bearish momentum. This is one reason why the trend has been spreading over the past year.
High-risk assets such as Bitcoin are often affected by interest rate increases. Blockchain.News reported that Bitcoin (BTC), fell to $18.5K on September 19, based on concerns about global monetary tightening.
On the other hand, BTC’s average long-term trading returns continue trending at historic low levels. Santiment pointed out:
“Bitcoin remains -72% from its November, 2021 all-time-high. These are just a few of the many reasons why Bitcoin is so popular. Market cap Drop, active traders who transacted in the past year have seen an average drop of -43%. Historically, MVRV hasn’t dropped much further than this before a rebound.”
Furthermore, key Bitcoin whale addresses have depleted their holdings to levels last seen in April 2020.
“The amount of Bitcoin held by whales has been dropping for 11 months now. As fears of inflation and a world recession continue, addresses holding 100 to 10k BTC have lowered their percentage of supply held of crypto’s top asset to 29-month lows.”
With the large number of non-zero BTC address reaching The monthly high was a record, however it remains to see how the top cryptocurrency market performs in the short term with more participants continuing to enter the market.
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