Talk on social media about inflation and the US Federal Reserve’s policies is growing rapidly as the price of bitcoin falls. Analysts of the Santiment resource drew attention to this. According to the published data, social activity around the inflation topic correlates with the Fed’s actions.
Analysts note that the last time the topics were actively raised in the summer of 2021. At the same time, Bitcoin at the moment dropped below $ 30,000 on the BitMEX cryptocurrency exchange. At the end of the summer season, the bitcoin price has renewed its all-time high, approaching $ 70,000.
Santiment believes that the more actively the community discusses one event, the more significant the actual movement of the market will become, often in the opposite direction from the expectations of the crowd.
Earlier, analysts noticed that speculators began to actively attribute the omicron to the reasons for the fall in bitcoin. For example, experts have found that since November 2021, reports of coronavirus have been correlated with Bitcoin price crashes. The spikes in coronavirus reports are being driven by rising incidences around the world.
However, the frequent coincidence of information outbreaks about the coronavirus and the fall of bitcoin can have a “reactionary effect”, according to Santiment. The speculators, analysts hint, are looking for any explanation that would fit the market situation. As Santiment suggested, a drop in social interest in the coronavirus could be the result of a decrease in fears.
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I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.