Crypto News

Cointelegraph Consulting: Overwhelming bullish sentiment once again proves costly

Analysis of sentiment and on-chain data shows that a correction was likely to occur. Is there still room for growth?

According to data collected from 1000+ crypto social media channels, the average crowd sentiment towards Bitcoin adapted from slightly bullish to overwhelmingly bullish over the days leading up to Thursday’s dramatic pullback, mirroring the levels previously observed during its May and August price tops, respectively. 

The latest findings by Santiment, published in Cointelegraph Consulting’s biweekly newsletter, indicated that with both short-term and long-term Bitcoin holders in a position of +15% and +63% profit, the likelihood of profit-taking became high. To make matters more ominous, the funding rate on Bitcoin’s derivatives market was at a three month high on Bitmex, Kraken, and Binance. The funding rate is the price paid by one side of perpetual contracts to the other, helping to keep the price of contracts trading close to the underlying reference price. A large funding rate is a sign that there is a large increase in long predictions on the exchanges, which can accelerate the frequency of mass-liquidations in the event of a price correction.

Other news from around the legislative and enterprise blockchain world showed fashion is becoming a target for blockchain solutions with VeChain powering a streetwear collection and IBM reaching a partnership with a textile giant. Japanese financial giant SBI announced their Bitcoin lending service, showing that the DeFi lending trend might be leaking into traditional institutions.

Read the full newsletter edition here for more news and signals, complete with detailed charts and images.

Cointelegraph’s Market Insights Newsletter shares our knowledge on the fundamentals that move the digital asset market. With market intelligence from one of the industry’s leading analytics providers, Santiment, the newsletter dives into the latest data on social media sentiment, on-chain metrics and derivatives.

We also review the industry’s most important news, including mergers and acquisitions, changes in the regulatory landscape, and enterprise blockchain integrations. Sign up now to be the first to receive these insights. All past editions of Market Insights are also available on Cointelegraph.com.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

0 Comments
Inline Feedbacks
View all comments

Related Crypto News

Former Ripple CTO may have lost much more than $220M in Bitcoin
Current CTO David Schwartz claims Stefan Thomas created hundreds of accounts with 1.0 BTC “because that was the fastest...
IMF Tells Governments: Spend as Much as You Can and Then Spend More
The head of the International Monetary Fund (IMF) has called on countries worldwide to spend as much as they...
Top 5 cryptocurrencies to watch this week: BTC, LINK, UNI, XTZ, ATOM
Bitcoin’s brief period of consolidation has opened a path for select altcoins to rally higher. Bitcoin (BTC) price has...
Strategist: Bitcoin more likely to be successful 'in the long run' than Ethereum
Lyn Alden likens Ethereum to the Concorde aircraft: functional, but not “an economically sustainable project.” One reason strategist and...
Dollar-Cost Averaging Crypto Profits: Low-Risk Bitcoin Investing Without All the Stress
Bitcoin prices and a number of other digital assets have grown significantly in value during the last decade. Some...
DeFi’s death by a thousand cuts
They said that 2020 was the year of DeFi. Perhaps 2021 should be the year of DeFi’s sensible regulation....

Featured Crypto News

Canada’s first public Bitcoin fund hits $1 billion
3iQ’s Bitcoin QBTC fund has surged 900% in market cap since October 2020, breaking a $1 billion milestone. Canadian...
US Fed: CBDC a ‘very high priority’ to combat bad private sector money
The United States Federal Reserve needs its own digital currency to protect against a possible overnight proliferation of stablecoin...
Coinbase Issues a Public Apology to EU and UK Customers — Did Not Address Its Global Issues
Cryptocurrency exchange Coinbase published a statement addressing their U.K. and E.U. customers, apologizing for system outages and account restrictions....
Anchorage Obtains Federal License to Operate as Crypto Bank From the OCC
The U.S. Office of the Comptroller of the Currency (OCC) has granted conditional approval to crypto custodian Anchorage to...
Respect the Pomp: RSK’s token spikes 30% after founder appears on podcast
RIF got a nice price boost hours after its founder appeared on Pomp’s podcast. RIF, the utility token for...
Bitcoin Reclaims $40,000 Just days after Falling to $30,000
After a sharp correction that lowered its price to nearly $30,000, Bitcoin is close to reclaiming $40,000. The leading...