According to Santiment, a platform that analyzes cryptocurrencies, a metric suggests that Bitcoin might experience a surge soon.
Federal Open Market Committee increased the interest rate by 0.25%
Santiment reports that after the Federal Open Market Committee increased the interest rate by 0.25% this week, Bitcoin has been the center of attention on social media platforms, overshadowing other digital assets.
Santiment believes that Bitcoin’s dominance on social media is a sign of “fear,” which could lead to a rise in its value.
Bitcoin continues to shine in the spotlight
It has been observed that discussions about Bitcoin have increased in comparison to other top 100 assets, especially after the FOMC raised rates and BTC approached $30,000 again.
This rise in social dominance may indicate fear, which could lead to a rise in price. Furthermore, Santiment reports that the amount of Bitcoin available on exchanges has decreased to a 55-month low, which is another positive sign for the cryptocurrency.
Bitcoin moves towards self custody
It seems that Bitcoin is moving towards self-custody, and even though it dropped below $30,000 last week, it did not trigger any severe reactions that would indicate fear, uncertainty and doubt (FUD) or upcoming sell-offs. As of now, there are only 1.17 million BTC on exchanges, which is the lowest since November 2018.
According to Santiment, a blockchain oracle, there is significant accumulation of Chainlink (LINK) by wealthy investors, also known as “whales.” This has caused the price of the 22nd largest cryptocurrency by market capitalization to soar.
The exchange of transactions valued at $1 million or more has been at its peak this year, which is a clear indication of the heavy accumulation by whales. Moreover, wallets with holdings ranging from 100,000 to 10 million LINK are also rapidly accumulating the cryptocurrency.
Stay tuned for more news and make sure to keep your eyes on the crypto market as well.
