The overall cryptocurrency market has been dominated by gloomy feelings throughout 2022, as key asset values have dramatically corrected throughout the lengthy sell-off. However, investor attitude looks to be shifting, indicating that markets may turn green in the near future.
According to statistics from blockchain intelligence firm Santiment, trader sentiment was at its highest positive in a month as of October 20, with investors predicting a rebound in the values of Bitcoin (BTC), Binance Coin (BNB), XRP, and Cardano (ADA).
Bitcoin has a weighted sentiment of 0.52 among the highlighted assets. At the same time, Ethereum (ETH), the second-ranked crypto by market capitalization, is the sole major digital asset recognized by the behavior analysis tool with a minor adverse attitude.
“However, the sustained pessimism and bearishness has receded as bitcoin traders predict a resurgence in the fourth quarter.” “BTC, BNB, XRP, and ADA all show optimistic audience sentiment, while ETH is just marginally negative,” the portal observed.
Bitcoin’s potential bottom
The positive forecast for Bitcoin comes as the currency consolidates around the $20,000 mark, leading the market to assume a bottom has been reached. Furthermore, a probable rebound in Q4 corresponds with Bloomberg Intelligence commodity strategist Mike McGlone’s expectations.
According to Finbold, McGlone believes Bitcoin’s ability to remain steady in the face of the last Federal Reserve interest rate rise demonstrates the commodity is poised to break out. Simultaneously, crypto researcher Kevin Svenson has predicted that Bitcoin would break out in April 2023 based on historical price movement.
Furthermore, historically, a Bitcoin rally has sparked a surge in the broader cryptocurrency market. However, other assets, such as XRP, are acquiring positive momentum as a result of linked network activity.
In this scenario, XRP benefits from good developments in the current litigation between Ripple, the token’s parent firm, and the Securities and Exchange Commission (SEC). With Ripple scoring tiny victories in recent weeks, the price of XRP has risen.
After the Merge, Ethereum remains negative.
Interestingly, despite the historic Merge upgrade intended to drive a price surge in the commodity, Ethereum is facing adverse feelings. Notably, after the event proved to be a ‘buy the rumor, sell the news’ situation, the update has been predicted to have a long-term influence on Ethereum.
Overall, cryptocurrencies have corrected as the Federal Reserve tightens policy in an attempt to curb soaring inflation. However, other market participants believe the Fed would likely hold down on tightening in order to protect the economy from entering a recession.
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