While communities behind those two assets are euphoric, Bitcoin and other cryptocurrencies will have to go through another depression cycle
According to data shared by Santiment, both XRP and ETH communities are looking forward to positive price performance of their favorite assets in the foreseeable future. Unfortunately, the other side of the market does not feel so reassuring.
As the on-chain data provider suggests, the movement of assets on the market at this point in time is mostly independent, which leads to a disbalance in the overall sentiment. Whenever the cryptocurrency market community is shattered, the general momentum in the industry disappears, making an industry-wide recovery impossible.
😩 With #crypto market caps bouncing very much in independent directions, we’re seeing notably euphoric crowd sentiment on $XRP & $ETH. Traders are less interested in $BTC, $BNB, & $ADA. Historically, #bearish sentiment projects perform better on average. https://t.co/bU3eilpyty pic.twitter.com/fQyreiWjUa
— Santiment (@santimentfeed) January 8, 2023
The euphoric crowd sentiment on XRP and Ethereum could be the result of short-term performance of Ethereum and a series of important strategic partnerships for XRP, which led to a rise in positive attitudes among investors. Unfortunately, it is hard to tell if the short-term occurrence of euphoric tendencies among investors will lead to anything.
Less interest is provided toward Bitcoin, BNB and Cardano, says the official Santiment account. Historically, the aforementioned assets rally with the general recovery of the industry, and the tendency we are seeing today is most likely temporary and will change with time.
At press time, the situation on the aforementioned assets is pretty similar, none of those pairs are showing any signs of upcoming major moves on the market, making it technically impossible to predict where the market will move in the short term.
Ethereum has recently returned to being deflationary, which could become a major factor for the second-biggest cryptocurrency on the market and its network. Traditionally, activity on the network recovers with the majority of investors returning to their usual working and tradition schedule.