Over the last seven days, cryptocurrency trading has amounted to a staggering $288 billion across 2,842 tracked assets, according to Santiment data.
This reflects a notable 22% decrease compared to the previous week.
📊 The past 7 days of #crypto trading volume has totaled $288B, according to our 2,842 tracked assets. This is a -22% drop compared to last week. Traders are showing decision paralysis, and #FOMO or #FUD should return once we see the next big market swing. https://t.co/G6r38lPVYy pic.twitter.com/wmUimM0XgU
— Santiment (@santimentfeed) February 7, 2024
Traders are exhibiting decision paralysis, anticipating the resurgence of Fear of Missing Out (FOMO) or Fear, Uncertainty, and Doubt (FUD) during the next significant market fluctuation.
There’s an argument that Bitcoin, Ethereum, and other cryptocurrencies will eventually align with the broader market, particularly considering their long-term correlation with the SP500.Â
📊 Assuming that #crypto still has its long-term correlation with the #SP500 intact, the argument of #Bitcoin, #Ethereum, and the rest of the sector should play catch up at some point (likely prior to $BTC's April halving). As #AllTimeHigh's continue to pour in for
(Cont) 👇 pic.twitter.com/8CyuLqAqhz
— Santiment (@santimentfeed) February 7, 2024
The Expected Date For This Alignment Sets At Before The Bitcoin’s April Halving
This alignment is expected to happen before Bitcoin’s April halving. It’s an uncommon scenario where cryptocurrency investors are rooting for a strong correlation between coin market values and publicly traded companies, especially as stocks reach All Time Highs.
During periods of little to no correlation with stocks, cryptocurrency often witnesses its most remarkable bull run cycles over the long term.Â
The debate over whether Bitcoin’s price trajectory mirrors that of high-leverage tech stocks has persisted since the notable correlation break following the FTX collapse in November 2022.
The dynamics of cryptocurrency trading and its relationship with traditional markets continue to fascinate investors and analysts alike, as they navigate through the complexities of this rapidly evolving financial landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.