- An article on the Santiment Community platform titled “The Pump Hunter’s Guide: How to spot and profit from artificially inflated crypto prices” discusses how Bitcoin, Ethereum, and Litecoin whales could impact future price levels. .
- Other experts have refused to link Bitcoin’s current rally to the deliberate activities of whales.
Most cryptocurrencies broke through several resistance levels to record some interesting highs this month with Bitcoin surging above $21,000 for the first time since November last year. Shortly after, the asset fell slightly as sentiment turned neutral. According to the latest market data, Bitcoin’s current sentiment has turned “bullish” with the price slightly above $23,000. This is an increase of 9.5% over the past seven days.
Ethereum is also enjoying bullish sentiment with a trading price of $1,635 and a weekly rise of 4.7%. Almost all of the top altcoins are green, including Solana which nearly crashed after the FTX empire collapsed. The asset is currently trading at $24 and investors have seen a weekly gain of 5.6%. Be that as it may, the question of whether it is a breakout or a fake remains in the minds of investors.
A publication on the Sentiment Community platform Ethereum “The Pump Hunter’s Guide: How to spot and profit from artificially inflated crypto prices” explains how Bitcoin, Ethereum, and Litecoin whales could impact future price levels. According to the post, the crypto community is widely aware of the recent market trend of artificially inflating prices called “pump”. Santiment is a market intelligence platform.
📊 According to our latest community post, there is unpredictability around #altcoin pumps that occurred in the markets throughout January. Read their opinion, and how #Bitcoins, #Ethereumand #Litecoin whales will impact future price levels. https://t.co/cztaupDkn1 pic.twitter.com/OMXlY8xTI6
— Santiment (@santimentfeed) January 23, 2023
Bitcoin investing could go wrong
The fact that the market may experience a decline a few days after a pump does not make its investment advisable.
Such trades usually go unnoticed unless the whales or large holders who are usually behind it start selling their positions. The message further states that this has been the situation for Bitcoin, Ethereum, and Litecoin which ends up pushing altcoins like Solana, Cardano, Dogecoin, etc. up the price curve. While many investors are jumping on a bandwagon to take advantage of the market’s mini-rally, the post says it could be dangerous.
It is advisable to be cautious and wait for better opportunities in the market rather than embarking on a potentially unstable investment. Stay safe.
Other experts have refused to link Bitcoin’s current rally to the deliberate activities of whales. According to them, the price is reacting to the CPI report from the Bureau of Labor Statistics (BLS) which reveals that overall urban consumer inflation is down 0.1%. This would be the biggest decline since April 2020. The data is expected to trigger a less severe interest rate hike from the Federal Reserve at the Federal Open Market Committee meeting scheduled to take place on February 1st.
Governor Christopher Waller gave a hint:
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Based on the data in hand at the moment, there seems to be a little turbulence ahead, so I currently favor a 25 basis point hike at the next FOMC meeting at the end of this month.
The cooling of the US Dollar Index (DXY) was also seen as a huge boost for Bitcoin. Analysts have observed that sentiment for Bitcoin increases every time DXY pulls back. Additionally, Bitcoin and major stock indices share a correlation coefficient. In this case, Bitcoin could surge with bullish stock markets if the interest rate is favorable.
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