- Bitcoin and Ethereum price recovery is lagging behind the spike in S&P 500, following the Silvergate FUD.
- Analysts measured record levels of crypto fear and doubt on Twitter, with a huge spike in bearish sentiment.
- As US financial regulators toughen their stance on crypto firms, crypto gears up for a volatility-filled week.
Bitcoin and Ethereum prices witnessed a decline on March 5, in response to the uncertainty surrounding Silvergate bank and its announcement of investigations by US financial regulators. Since March 5, the S&P 500 have recovered, soaring higher as sentiment among market participants turned bullish.
In the case of crypto, the sentiment is largely bearish, on Twitter and social media platforms. It remains to be seen whether Bitcoin, Ethereum and cryptocurrencies will continue to lag or catch up with the S&P 500.
Crypto lags behind the S&P 500 as US equities traders turn bullish
Cryptocurrencies with large market capitalization, Bitcoin and Ethereum are struggling to recover from the recent decline on March 5. S&P 500 and US equities climbed higher as the sentiment among investors turned bullish.
S&P 500 climbs higher while Bitcoin and Ethereum struggle to recover
In a recent YouTube video, experts from Santiment argued that the Fear, Uncertainty and Doubt (FUD) among traders after crypto clients dropped Silvergate Bank and US financial regulator’s tightening stance on cryptocurrency regulation are fueling a bearish sentiment among market participants.
Crypto intelligence tracker Santiment noted high levels of negative crypto sentiment, one of the highest levels of FUD ever recorded by the Santiment Feed.
Sentiment among traders turned negative
Experts believe traders can capitalize on this level of negativity on the markets, and overwhelmingly bearish sentiment typically leads to a bounce. According to analysts, the negative sentiment can be explained by the current events and the Securities and Exchange Commission’s critical stance on cryptocurrencies and crypto firms.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Arbitrum’s ARB price rallies after Chainlink CCIP mainnet launch
The protocol’s arrival on Arbitrum is key to the further development and growth in the ARB ecosystem as it is expected to improve the user experience and attract developers.
BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.
FTX fights to clawback $157 million from former employees while creditors struggle with $7.9 billion in claims
FTX exchange has sued former employees of Salameda, a Hong Kong based entity affiliated with the trading platform. The court filing shows that the bankrupt exchange seeks to recover $157.3 million from Salameda employees.
First Ethereum futures ETF expecting approval by October 2
The first Ethereum futures ETF (exchange-traded fund) is likely to be approved on October 2, according to crypto hedge funder Hal Press. The North Rock Digital founder’s thesis is based on the recent events in the crypto ecosystem.
Bitcoin: BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.