However, as of September 14, amid the short-term price correction, investor interest in buying Bitcoin remained low in comparison to when the value of the asset was rising, data from Santiment’s behavior analysis indicates. In particular, the total social volume analyzed stands at 94,862, with the terms’ buy’ or ‘buying’ or ‘bought’ accounting for only 5.06% at 4,799.
Implication of reduced buying interest
The latest trend appears to be different from the historical trajectory where investors buy Bitcoin when the price falls. In this case, it can be assumed that investors are projecting a further collapse in Bitcoin’s prices before buying. At the same time, the Santiment data indicates that buying interest surged when Bitcoin attempted to stabilize above the crucial $20,0000. The trend can be interrupted as investors reacting to the fear of missing out (FOMO). Additionally, cryptocurrency analyst Willy Woo has suggested that Bitcoin is yet to bottom based on historical trends.
Bitcoin reaction to CPI data
It is worth noting that Bitcoin’s price plunged in the wake of the CPI data release, but before the crash, the flagship cryptocurrency had risen consistently, moving to a three-week high, topping the $22,000 level. With inflation soaring, the Federal Reserve is expected to hike interest rates, a factor likely to impact Bitcoin negatively. In this line, as reported by Finbold, senior commodity strategist at Bloomberg Intelligence Mike McGlone believes Bitcoin will likely emerge ahead from the current economic condition. An overview of Bitcoin shows that the asset is still correcting, trading at $20,300 by press time, dropping by almost 10% in the last 24 hours. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
