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Santiment analysts notice an increase in Bitcoin price divergence and talk of inflation as the cryptocurrency falls
Social media conversations about inflation and the US Fed’s policies are actively growing as the price of bitcoin falls. Analysts of the Santiment resource drew attention to this. According to published data, social activity around the topic of inflation correlates with the actions of the Fed.
Analysts note that the last time the topics were actively raised was in the summer of 2021. At the same time, Bitcoin immediately fell below $30,000 on the BitMEX cryptocurrency exchange. At the end of the summer season, the price of bitcoin updated its all-time high, approaching $70,000.
Santiment believes that the more actively the community discusses one event, the more significant the actual market movement will become, often in the opposite direction from the crowd’s expectations.
Earlier, analysts noticed that speculators began to actively attribute omicron to the reasons for the fall of bitcoin. For example, experts have found that since November 2021, coronavirus reports have been correlated with Bitcoin price crashes. Bursts in reports of coronavirus are driven by an increase in cases around the world.
However, the frequent coincidence of information outbreaks about the coronavirus and the fall of bitcoin can have a “reactionary effect,” Santiment believes. Speculators, as analysts hint, are looking for any explanation that would fit the situation on the market. As suggested by Santiment, the drop in social interest in the coronavirus may be the result of a decrease in fears.
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