Social activity in the crypto community is skyrocketing amid signs of a potential market downturn
For months, the cryptocurrency sector has been battling an extended bear market, with assets like Bitcoin (BTC) weighed down by prevailing macroeconomic factors. However, the market is showing signs of improvement, a factor that seems to be fueling excitement in the crypto community.
Along these lines, as of October 26, the crypto community’s social activity had skyrocketed, reaching 910.63 mentions, with the metric likely to achieve a new all-time high if the decline is sustained, data from LunarCrash indicates.
“Global crypto community activity skyrockets at the slightest sign of a potential bounce. Confirmation of a bounce could send community activity to all-time highs,” the platform said.
Implications of social activity on crypto
In particular, there is a correlation between cryptocurrency price movement and social media activity. Most social media platforms are seen as an indicator of the crypto community’s collective thoughts and ideas about the sector.
Furthermore, the value of cryptocurrencies can often be determined by an increase in social media engagement. The trend has mainly affected altcoins.
Bitcoin leads mining
The signs of a possible market rally have been highlighted with Bitcoin’s rise above the $20,000 level. Notably, after consolidating around the $19,000 – $20,000 level, Bitcoin is now eyeing the $25,000 region. At press time, the asset was trading at $25,700.
The price rise also follows Bitcoin’s falling volatility below major mainstream indices, making the flagship cryptocurrency look more stable than its risky asset status.
Furthermore, most digital assets are also attracting increasing buying pressure driving the market to regain its $1 trillion capitalization after trading below that level for about six weeks.
In addition to Bitcoin, Ethereum (ETH) is also leading the second-ranked cryptocurrency rally, trading at $1,550 with a market cap of $1,550, gaining over 20% over the past seven days. Interestingly, Ethereum had reached a new price level for the first time since September 15, when the historic Merge upgrade took place.
Although the crypto space is showing signs of recovery, investors need to be cautious as macroeconomic factors continue to take a toll. In addition, the challenges surrounding Bitcoin led by miners still persist.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
