Cryptocurrencies, European equities, and U.S. equity futures all experienced losses as worries about sustained interest rate increases were exacerbated by stubbornly high U.K. inflation.
When cryptocurrency prices fell more broadly, Bitcoin once more fell below the psychological $30,000 threshold. The top cryptocurrency had a drop of up to 5% before partially recovering to trade at about $29,465 at the time of publication. Over and above Ethereum’s 7% drop, other cryptocurrencies like Solana and Avalanche witnessed greater declines (ETH).
Statistics from Coinglass show that due to the unanticipated sell-off, long bets totaling $237 million were liquidated on various exchanges.
Jim Cramer, head of CNBC’s Crazy Money and a financial commentator, commented on the general decline on Twitter by writing, “Coming close to being oversold.”
Given that Cramer’s predictions frequently come true in the other way, the tweet drew the attention of the bitcoin community. “Dump confirmed,” a Twitter user wrote, while other users shared amusing memes advising Cramer to have the opposite opinion.
Crypto market still in disbelief: Santiment
Santiment, an on-chain analytics company, claims that as the trading community seeks to negotiate the cryptocurrency market’s constrained range, social metrics and financing rates are currently telling conflicting tales.
It states in a blog post that less people are taking part in debates now than they were at the beginning of the year on Twitter, Discord, Telegram, and Reddit. This decrease could mean that people are unsure about what to think. In general, declining audience interest despite increased ticket costs usually indicates that there is some scepticism present.
With just over a year until Bitcoin’s much-anticipated halving, Q1 was a wonderful journey for crypto bulls. Now that Q2 is approaching, the crypto market must keep an eye on social metrics and financing rate to see whether Q1’s performance can be sustained.
