Bitcoin, XRP and two other trends are driving crypto markets right now, according to analytics firm Santiment

New data from market intelligence firm Santiment suggests that four main trends are currently driving the crypto markets.

in a new blog postThe crypto analytics platform says optimism focused on Bitcoin (BTC) and XRP is driving the industry in October, while developments with Reddit and the Federal Reserve are causing concern.

According to Santiment, the king cryptocurrency hit $30,000 twice in a week and the US Securities and Exchange Commission (SEC) dropping its charges against Ripple executives Brad Garlinghouse and Chris Larsen has brought new sentiment bullish to the markets.

“High discussions about the [BTC’s] The $30,000 range will generally be celebratory, therefore you will see it overlap with a high feeling of FOMO (fear of missing out). When Bitcoin price attempts to breach a long-term resistance level, we would rather see the crowd less excited about it coming to fruition. Major spikes will usually be indicative of a maximum signal due to excessive crowd enthusiasm.

The high discussions about the Ripple/XRP lawsuit victory may already show a bit of the “buy the rumor, sell the news” aspect. Yesterday, XRP jumped 10% when experts were first notified of this news. And now that the explanation for the jump has hit the mainstream, XRP is not seeing any secondary market decoupling (at least not yet).”

Looking at the more bearish developments in the market, Santiment says that the loss of Reddit users’ ability to tip other community members through MOON and DONUT, coupled with a hawkish stance expressed by the Federal Reserve, is causing concern for investors.

However, the analysis firm notes that the Federal Reserve’s stance is only relevant if crypto markets rejoin the S&P 500, adding that such a scenario is likely.

“The intense discussions related to Reddit stopping its token tipping will likely be a mild reflection of the overall FUD (fear, uncertainty and doubt) of the crypto market, which could have a positive impact on prices. Watch for a wave of negative posts in the final days leading up to the official removal of MOON and DONUT tipping on November 8th.

The intense discussions related to Powell and the general US economic concerns expressed by the Fed will only affect cryptocurrencies if the cryptocurrency sector starts following the S&P 500 again. Right now, cryptocurrency prices are trading closely with the value of gold, which could be attributable to the war.

But don’t be surprised if we start to see the sectors operate together again, which would mean that negative news coming from the Federal Reserve could lead to highs in cryptocurrency prices, as we saw throughout 2022 and early 2023. .

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source: dailyhodl.com