Dull Start to August: Bearish Sentiments Cause Altcoin Slumps – Coinpedia Fintech NewsAugust 1, 2023
Cryptocurrency market faces bearish sentiment in August, altcoin rally stalls.
Santiment report: Traders fearful, Bitcoin shows short-term weaknesses, whales reduce trades.
Despite Bitcoin ETF excitement, market liquidity declines, uncertainty persists.
August arrived with a gloomy air in the cryptocurrency market, as bearish sentiments started to gain momentum. The altcoin market, in particular, experienced a sharp decline, losing the bullish momentum it had enjoyed in July, which was ignited by the SEC vs Ripple ruling.
This turn of events has left traders uncertain about the prospects of an altcoin rally in the upcoming weeks, even in the wake of high-impact news regarding Litecoin (LTC) halving. Additionally, Bitcoin dominance hovered around 49.8 percent, further adding to the apprehension.
Santiment’s Insights: Fear Grips Crypto Traders
On-chain intelligence platform, Santiment, compiled a comprehensive crypto report revealing that digital asset traders find themselves in a state of stagnation, as most of their trade setups failed to materialize as expected. This stagnant phase has led to a prevailing sense of fear among traders, with Bitcoin showing vulnerabilities in the short term. Notably, even crypto whales have scaled back their trade volumes, contributing to the overall market uncertainty.
In an interesting twist, the social dominance of Bitcoin has also taken a hit in recent weeks, with more traders choosing to observe from the sidelines. The increasing fear in the crypto market has coincided with a decrease in liquidity, despite the recent Bitcoin ETF frenzy that had garnered substantial interest from institutional investors.
Read More: Bitcoin Price Prediction August 2023: BTC Adoption Climbs High, Price May Hit $40,000 Soon
Where Did the Momentum Go?
The cryptocurrency market had high hopes as July drew to a close, with the altcoin sector showing considerable promise following the SEC vs Ripple ruling. However, the initial bullish momentum that drove altcoins skyward fizzled out as August began, bringing a wave of bearish sentiments. As a result, traders are now left questioning the prospects of a renewed altcoin rally.
This Might Interest You: Altcoins Technical Analysis for August; ADA, SOL, DOT, LUNC & DOGE
What do you think? Are you bullish or bearish on altcoins in the coming weeks?
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