Crowd Sentiment towards Crypto Turns Bearish as Inflation Data Looms

The crypto market has not yet been able to find the right footing based on tightened macroeconomic factors and Russia’s invasion of Ukraine.

Crowd sentiment towards this result is a positive one cryptocurrencies Santiment has been negative. Market insight provider Santiment explained:

“With BitcoinWhile Ethereum and most altcoins fell slightly Monday, it was still evident that the crowd is continuing to bearish. Green bars indicate more FUD than usual toward an asset, and red bars indicate more FOMO.”

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Source: Santiment

Based on Santiment’s data, fear, uncertainty & doubt (FUD) continue to rock the crypto market, prompting a bearish outlook. According to CoinMarketCap. Bitcoin (BTC), Ethereum and Bitcoin were both down by 1.89% & 2.95% to $19,067 and $1.278, respectively, during intraday trades. 

This trend is already being observed ahead of U.S. inflation data, which will be released on October 13. 

Riyad Carey is a Kaiko research analyst pointed out:

“There seems to be some jitters and derisking across all markets as we approach Thursday’s CPI release.” 

Carey has been added:

“Bitcoin is moving closely with equities and I’d expect that to continue as there haven’t been many crypto-specific catalysts in recent weeks. I also expect significant volatility on Thursday, with a move up or down depending on the inflation figure.”

The Bureau of Labor Statistics will announce the consumer price index for September. Some economists expect a 0.3% monthly gain and an 8.1% annual increase.

The federal reserve (Fed), has been on an up-and-down roller coaster ride, increasing interest rates to control runaway inflation. However, this has been detrimental for the crypto market.

This trend has been a source of concern for many players. James Butterfill, head of research at CoinShares stated that:

“We believe there is a building narrative that central banks are beginning to make policy errors. Several of our clients have made the point that they don’t want to buy Bitcoin right now, but as soon as the Fed pivots, they will add to positions.”

Blockchain.News reported recently that the UNCTAD pointed out that the Fed should lower interest rates because this could trigger global recession. 

Source: Shutterstock

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