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Cryptocurrency No. 1 for the first time in its history is traded for the eighth week in a row in the negative zone. The reason for the development of this trend was weak macroeconomic indicators, systemic risks of the digital assets segment and investors’ concerns about the further growth of inflation in the United States. At the same time, there are no obvious catalysts that can stimulate sustainable growth.
In mid-March of this year, bitcoin reached a local maximum at around $ 46,000. But since then, the asset has steadily lost its position, having decreased in price by almost 60%. Not the last role in this situation was played by the direct correlation of BTC with the stock indices SPX and NASDAQ.
Analytical company Santiment has published data from its Weighted indicator, which calculates negative and positive comments on the asset in social networks. Based on this information, a kind of social mood is published. If you believe the testimony of this tool, then bitcoin can already be located on the global bottom, which will contribute to its growth in the coming weeks.
History shows that prices most often rise when investor sentiment is low. And now is just the very moment when bitcoin has every chance of limited strengthening, analysts at Santiment point out.
In April of this year, experts from Goldman Sachs noted that the aggressive policy of the Fed could provoke recessionary phenomena in the US economy. Against this background, institutional investors began to give preference in favor of defensive financial instruments. At the same time, bitcoin itself is still perceived by the public as a high-risk asset.
Earlier, the editors of the Crypto.ru reported that a well-known investor Peter Schiff publicly admired bitcoin. Being an ardent critic of the crypto industry, he admitted that Bitcoin behaves steadily in a difficult geopolitical and macroeconomic environment.
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