Cryptocurrencies, European stocks and U.S. equity futures all fell as persistently high U.K. inflation stoked concerns about interest rates rising for an extended period.
Amid a wider decline in cryptocurrencies, Bitcoin once again dipped below the psychological $30,000 mark. The lead cryptocurrency fell as much as 5% before reversing some of its loss to trade at roughly $29,465 at press time. Cryptocurrencies like Solana and Avalanche saw bigger declines than the 7% loss experienced by Ethereum (ETH).
According to statistics from Coinglass, the unexpected sell-off caused long positions worth $237 million to be liquidated across exchanges.
CNBC Mad Money host and financial analyst Jim Cramer took to Twitter to comment on the drop seen across the board, saying, “Getting near being oversold.”
Getting near being oversold!
— Jim Cramer (@jimcramer) April 19, 2023
The tweet caught the attention of the cryptocurrency community, as Cramer’s predictions often turn out contrary. A Twitter user commented, “dump confirmed,” while others posted funny memes telling Cramer to take the opposite view.
Crypto market still in disbelief: Santiment
According to on-chain analytics firm Santiment, social metrics and funding rates are showing contrary stories at the moment, as the trading crowd tries to navigate crypto’s tight range.
📊 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
In a blog post, it notes fewer people are participating in discussions on Twitter, Discord, Telegram and Reddit now than were at the start of the year. This drop might imply the crowd does not know what to think. In general, falling crowd interest despite rising prices typically denotes that there is some disbelief going on.
With around a year until Bitcoin’s eagerly anticipated halving, Q1 was an incredible trip for crypto bulls, and now the crypto market must watch out for the social metrics and funding rate to decide whether Q2 will be a continuation.