Bitcoiners are excited by the latest market rally, but it might be too soon.
In a tweet on Saturday, blockchain analytics firm Santiment Feed notes that traders have become overly optimistic as mentions of “moon” and Lambo reach record highs following Bitcoin’s latest relief rally.
“Bitcoin’s mild +8% July rise has been enough for crypto traders to begin breaking out the lambo & moon mentions again. Whether sarcasm or not, this occurs when traders are becoming overly optimistic. Mentions hit their highest levels since Jan 18,” Santiment tweets.
?️? #Bitcoin's mild +8% July rise has been enough for #crypto traders to begin breaking out the #lambo & #moon mentions again. Whether sarcasm or not, this occurs when traders are becoming overly optimistic. Mentions hit their highest levels since Jan 18. https://t.co/Y8JORBxGdC pic.twitter.com/15nOYuXPq7
— Santiment (@santimentfeed) July 16, 2022
It is worth noting that following the latest inflation data release from the US Labor Department on Wednesday, the crypto markets have shown signs of a resurgence. Seemingly unaffected by inflation hitting 41-year highs, the crypto markets rallied while the stock market continued to dump.
Notably, it is the first time both markets have shown significant decoupling, with the correlation dropping as low as 0.5. Santiment, at the time, noted that further decoupling of the markets could be good for Bitcoin as it could indicate a breakout.
Ultimately a growth in the crypto markets despite rising inflation would further strengthen the narrative of Bitcoin as a safe haven currency and store of value. Notably, pundits like Arthur Hayes have predicted that inflation-induced weakness in the Euro and the Dollar would see a flight toward Bitcoin and gold, consequently driving the price of the former to $1 million.
However, traders may have been too quick to start window shopping for Lamborghinis. On Friday, Whale Alert reported that a whale had transferred 10,000 BTC (approximately $208 million) to Bitfinex, indicating a desire to sell which could trigger a further price dump.
? ? ? ? ? ? ? ? ? ? 10,000 #BTC (208,047,675 USD) transferred from unknown wallet to #Bitfinexhttps://t.co/a7fSxFoTu2
— Whale Alert (@whale_alert) July 15, 2022
It is worth noting that The Crypto Basic reported on Friday that seasoned price action trader Justin Bennet believes that the price of the leading digital asset could plummet to $8,500. At the time of writing, Bitcoin is trading $20,743 price point, up 0.99% in the last 24 hours.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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