“Social Dominance” of Bitcoin has risen to its greatest level since July, as the crypto retreats to a two-month low, falling below $19k.
While BTC as well rest of the altcoin troupe have been trading in the red, leading data analytics Santiment showed that this price dip comes at a time when the social discussions surrounding Bitcoin have been one-third of the top 100 assets.
High Bitcoin discourse, according to the platform, is a fear sign, which historically can turn around markets.
On the other hand, a low amount of BTC discussion signals optimism in altcoins and the market in general.
Recently, a source person familiar with the activities of Mt. Gox’s largest creditor has revealed that the fund has decided to hold the tokens that are scheduled to be returned this October rather than selling them.
As reported by TronWeekly, Mt. Gox Investment Fund, the creditor, in question has also chosen an early payout where it would receive 90% of what is due, with a ratio of approximately 70% BTC and 30% fiat, according to an anonymous source.
Also, in the early payout option, the trustee need not sell tokens to buy fiat funds since the creditor also chose to be paid in BTC.
This has eased market fears because token sales of that magnitude could potentially have a negative impact on the crypto market,
Earlier, the trustee for the defunct Japanese bitcoin exchange, Mr. Nobuaki Kobayashi, issued a notice on March 7, informing creditors to register their repayment claims before March 10, 2023.
The deadline has now been extended to April 6.
That being said Bitcoin’s negative on-chain metrics have pushed BTC traders to take a step back, especially after the “voluntary liquidation” of crypto-focused bank Silvergate.
Bitcoin’s Negative Sentiment Has Affected Trading
Data from CoinGecko and CryptoQuant points out that key metrics such as trading and transfer volume as well as active addresses count have taken a hit in the month of March.
However, analyst Guilhem Chaumont, who heads the Paris brokerage firm Flowdesk, believed that BTC’s lackluster trading activity is giving signs of a “calm before the storm,” adding that ” the situation can still go either way.”
At press time, Bitcoin is exchanging hands at $19,925, down by over 8% in the daily index. In the last seven days, over 10% of BTC’s value has been eroded.