Data Shows Traders’ Optimism Toward Leading Crypto Has Dropped
- Santiment has released data showing that social metrics and funding rates are contradictory in nature.
- The data from the analytics platform reveal that there is an increased social FUD.
- Reportedly, the social data trend is showing signs of likeliness to see a crypto bull run.
Santiment stated in a recent blog that during the last 5 weeks, traders’ optimism toward the leading assets in the crypto market had decreased gradually. The blog stated that the social data is showing a trend that is likely to witness a crypto bull run.
The market intelligence platform, details the social metrics and funding rates, highlighting the increased social FUD. The blog also talks about the current stance on the social prediction of traders and also the funding rate side.
Social metrics and funding rates are showing contrary stories at the moment, as the trading crowd tries to navigate #crypto’s tight ranging. Our latest insight looks at funding rate longs & the increased social #FUD, & what it means for price action. https://t.co/ZfcWmPhXOi pic.twitter.com/Bwa56PL3KR
— Santiment (@santimentfeed) April 19, 2023
Santiment claims to have conducted a backtest of several years’ worth of data and observed that prices tend to follow the least expected direction by the majority. As traders’ doubt increases, the chances of sustained price increases also go up.
The market intelligence platform noted a decrease in the number of bullish and bearish signals from market participants. Additionally, there has been a decline in the number of people participating in discussions on social media platforms such as Twitter, Discord, Telegram, and Reddit compared to earlier in the year.
According to Santiment, there is a small inclination towards long positions. They also observed that none of the top market capitalization assets they are monitoring exhibit indications of a negative funding rate when factoring in average rates across various platforms such as Binance, Bitmex, DyDx, and Deribit.
Santiment mentioned that this data is interesting considering what they see on social media, which has been more bearish in the last month. They also mentioned that the loudest voices in crypto have quieted down and have refrained from putting out bullish narratives.
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