For months, the cryptocurrency sector has battled an extended bear market, with assets like Bitcoin (BTC) being weighed down by the prevailing macroeconomic factors. However, the market is showing signs of recovery, a factor that appears to elicit excitement within the crypto community.
In this line, as of October 26, the crypto community’s social activity had skyrocketed to hit 910.63 mentions, with the metric likely to attain a new all-time if the rebound is sustained, data by LunarCrash indicates.
“Global crypto community activity is skyrocketing at the slightest sign of a potential bounce. Confirmation for a bounce might send community activity to all-time highs,” the platform said.
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Implications of social activity on crypto
Notably, there exists a connection between cryptocurrency price movement and social media activity. Most social media platforms are viewed as an indicator of the crypto community’s collective thoughts and ideas about the sector.
Furthermore, the value of cryptocurrencies can often be determined by an increase in social media engagement. The trend has affected chiefly altcoins.
Bitcoin leads recovery
The signs of a possible market rebound have been highlighted with Bitcoin’s surge past the $20,000 level. Notably, after consolidating around the $19,000 – $20,000 level, Bitcoin is now eying the $25,000 region. By press time, the asset was trading at $25,700.
The price rebound also follows Bitcoin’s falling volatility below major mainstream indices making the flagship cryptocurrency look more stable than its risky asset status.
Furthermore, most digital assets are also attracting increasing buying pressure driving the market to regain the $1 trillion capitalization after trading below the level for about six weeks.
Besides Bitcoin, Ethereum (ETH) is also leading the rebound with second-ranked cryptocurrency by market capitalization trading at $1,550, gaining over 20% in the last seven days. Interestingly, Ethereum had attained a new price level for the first time since September 15, when the historic Merge upgrade took place.
Although the crypto space is exhibiting signs of recovery, investors need to be cautious since the macroeconomic factors continue to take a toll. Additionally, challenges around Bitcoin led by miner strain are still lingering.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
