One of the best ways to determine market direction is to look at the market sentiment. It gives a hint on what people are thinking about a specific crypto, and by extension, the decisions they are likely to make when trading it. Let’s now go through the market sentiment of some of the most popular cryptos in the market today.
Bitcoin currently enjoys a very positive sentiment and goes to show that investors expect Bitcoin (BTC) to rise. This bullish sentiment also reflects in bitcoin (BTC)’s volumes which have shot up in the day.
The price has gone up sharply too, and broken above $6500. If volumes continue to rise, bitcoin (BTC) could go even higher, and break above $7000.
The positive sentiment around Bitcoin (BTC) could be supported by news of an upcoming Bitcoin (ETF). The expectation is that if the SEC approves the bitcoin ETF application made by the CBOE, institutional investors will jump into bitcoin, and push up the price back to over $15,000. On the basis of this it is safe to conclude that Bitcoin (BTC) is likely to stay bullish in the short-term.
The sentiment around Ethereum (ETH) is way more positive than that of Bitcoin (BTC), and stands at over 73% by some estimates. This is consistent with the fact that Ethereum (ETH) generally tends to rise faster than Bitcoin (BTC) in a bull market.
With Bitcoin breaking above $6500, investors expect that Ethereum could outperform Bitcoin and offer better returns. Indications of this are already there in the day, where Ethereum (ETH) is up by over 5%, while bitcoin is up by around 3%.
Another factor that is driving up the positive sentiment around Ethereum is the fact that it is cheaper in dollar value, when compared to bitcoin. It simply means you get more units of Ethereum for every dollar spent compared to Bitcoin. It might not sound like a great deal but it actually plays a great part in the psychology of investors.
As such, Ethereum’s high sentiment has nothing much to do with fundamentals, but with the expected price action in case of Bitcoin rally.
XRP (XRP)’s sentiment is very positive today, standing at 75% by some estimates. It’s a sign that investors are very bullish about XRP (XRP) at the moment. The primary factor driving it is the bullish reversal of Bitcoin (BTC).
At $0.50 XRP a unit is no doubt one of the most undervalued cryptos in the market
This and the fact that there is the upcoming SBI exchange for retail traders which could will drive up volumes and as a consequence, the price.