All eyes should have been on Bitcoin when the king coin jumped over $ 51,000, marking its highest price since mid-May. However, the behavior analysis platform Santiment showed that the Bitcoin discussion rate had decreased. The reason? Short-term traders have been busy watching the trending alt-coins.
📈 #Bitcoin ended the weekend jumping to $ 51,911, its highest price since May 12th. The rising interest in the more volatile and (mostly) higher-yielding #altcoins has allowed $ BTC to grow slowly and steadily as short-term traders #FOMO are elsewhere. https://t.co/mnyKU7gjj8 pic.twitter.com/l3yR0Rq9f8
– Santiment (@santimentfeed) September 6, 2021
Solana’s dazzling rally as it crossed the $ 100 mark and continued to rise fascinated many traders. On the flip side, Bitcoin struggled to break out and cross the $ 50,000 resistance.
Santiment also noted that polygon [MATIC] and Cardano [ADA] Leader in the “Topics Up” metric. Matic was on everyone’s lips thanks to its 31% price rally in four days. Meanwhile, Ada was in the news because of the FUD after Cardano’s alleged Testnet “failure”.
📢 #Polygon and #Cardano are the two top topics in #Cryptocurrency Sunday for very different reasons.
📌 $ MATIC: a sharp rise, 31% in the last four days
📌 $ ADA: Crowd #FUD about the ability of its integration with smart contractshttps: //t.co/lnloXAkAat pic.twitter.com/rKeMu2zw5J
– Santiment (@santimentfeed) September 5, 2021
Fight against human nature
The fear of missing out (FOMO) can lead investors to make dangerous financial decisions or fall victim to pump-and-dump scammers. In that case, FOMO could have prompted traders to watch Alt Coins pop up in space after Santiment’s Bitcoin Weighted Sentiment value fell below zero.
Another reason for the fresh look at altcoins could be influencers like Charles Hoskinson. The Cardano founder has a strong presence on social media and is vocal about those he calls “FUDsters”. The Indian film studio Zee Studios has launched its first NFT on Polygon for Matic. Such events could also have the potential to trigger crypto FOMO and attract short-term traders.
See Bitcoin from perspective
On September 6, on-chain analyst Willy Woo tweeted Bitcoin’s growth rate and compared it to the growth of gold and stocks [M2 money]. Graphed on the same scale, the effect was breathtaking.
Here their growth path is of the same order of magnitude. pic.twitter.com/PKnTRui5uU
– Willy Woo (@woonomic) September 6, 2021
Woo’s analysis helped many put Bitcoin’s seemingly lethargic growth into perspective. Another analysis by him using the supply shock valuation model found that the current price of Bitcoin is over $ 55,000. Additionally, Bitcoin stock-to-flow inventor Plan B confirmed that its “$ 100K by Christmas” estimate is still valid.
At press time, Bitcoin was priced at $ 51,838.52. The last update of the Bitcoin Fear and Greed Index recorded a value of 73, which indicates “greed”. While Bitcoin hodlers wait out the fall season, Santiment’s metrics suggested that more traders could focus on the alt-coin market.