On Tuesday (10), the cryptocurrency rose 170% with the listing of Tap Global in London while Bitcoin (BTC) watched the next moves of the Federal Reserve (Fed), the US central bank, regarding signs of possible new interest rate hikes after the upcoming meeting of the committee. Monetary Policy (Fomc), in Feb.
In the area of profit opportunities, investments, listings, new product launches and improvements in projects, among others, can be considered outliers in relation to the prevailing downward trend among analysts for 2023, as the Federal Reserve indicated that it will continue to tighten interest rates throughout the year, a move that should Other central banks around the world repeat it.
As in 2022, the in-between meetings and announcements from the Federal Reserve and other financial institutions, which also include consumer price indexes (CPI), unemployment rates, and other geopolitical and macroeconomic factors, tend to act as a window for cryptocurrency investors. This is because, in general, these spaces can favor the entry or exit of capital from the cryptocurrency market, thus favoring the possibility of short-term gains or losses.
An observer of on-chain analysis platform Santiment is “Crypto Market Windows,” which historically sees a correlation between the degree of investor enthusiasm that preceded the rise or fall in crypto-asset prices.
Although it seems contradictory at first, Santiment says that when traders are bullish on a cryptocurrency, the price tends to go down, while when they are pessimistic, the price tends to go up. Which is likely related to the buying and selling pressure on crypto assets.
According to Santiment, today’s optimism specifically could mark the fall of Ethereum (ETH) and XRP, the token for international payments startup Ripple, in the coming days. Conversely, trader pessimism regarding Bitcoin and altcoins on the Cardano blockchain (ADA) and BNB, a token from the BNB Chain and the Binance exchange ecosystem, could mark a rally in the coming days.
“With cryptocurrency market caps rising sharply in standalone trends, we are especially seeing euphoric investor sentiment towards XRP and ETH. Traders are less interested in BTC, BNB, and ADA. Historically, bearish sentiment projects have performed better on average.” Saintment reported.
😩 with # encrypt Market caps bounce a lot in indie directions, and we’re especially noticing the crowd’s sense of exhilaration $XRP & ETH dollars. Traders are less interested in BTC dollarsAnd BNB dollarsAnd & ADA dollars. historically, #bearish Sentiment projects perform better on average. https://t.co/bU3eilpyty pic.twitter.com/fQyreiWjUa
—Santiment (@santimentfeed) January 8, 2023
From what CoinMarketCap’s monitoring showed, BNB and ADA prices showed the biggest declines against BTC, trading, respectively, at $274 (-1.7%), $0.31 (-2.8%) and $17.2K (-0.14). %). The value of XRP and ETH was $0.34 (-1.4%) and $1,326 (+0.50%), respectively.
For Chinese miner Jiang Chu’er, the optimism about Ether is likely to be more enduring. According to him, the altcoin will rise and bitcoin will remain in the doldrums in the coming months, as reported by Cointelegraph Brasil.