In a recent analysis, Santiment, the leading market intelligence platform that uses on-chain and social metrics, has identified the key drivers behind the crypto market’s performance in 2023.
Bitcoin Trading Above $30,000
In a recent spike in activity, Bitcoin (BTC), the leading cryptocurrency, made two attempts in the last few days to breach the critical $30,000 resistance level. A breakout of this zone would have marked a significant bullish run for the asset.
However, on both occasions, it was unsuccessful. Meanwhile, Santiment analysts emphasized that BTC’s breakout of this zone would provide a psychological boost for the broader crypto market. Current Coingecko data shows that BTC’s price is $30,163, and this coming week will prove whether BTC will continue its bullish run as predicted by Santiment’s analysts.
Ripple Gets A Boost
Meanwhile, the United States Securities and Exchange Commission (SEC) has decided to drop its charges against Ripple Labs, a significant development for the cryptocurrency industry. The lawsuit centered on Ripple’s classification of XRP, the firm’s native token, as a non-security.
The recent decision by the regulator provides some relief to Ripple, which has been embroiled in a legal battle with the SEC for almost three years. Santiment Analysts believe the dismissal of Ripple’s charges will positively impact the broader crypto market.
According to them, it would also influence how regulatory authorities view and regulate digital assets. It highlights the evolving crypto regulations and emphasizes the SEC’s changing stance toward the industry.
Setback For Reddit’s Crypto Community
Santiment also highlighted a significant development within the crypto community involving Reddit, one of America’s top social news aggregation platforms. Reddit users can no longer reward or tip fellow community members using the ecosystem’s governance token, MOONs, and DONUTs.
While the value of these tokens may be small, Santiment believes that this change will significantly reduce the transaction volume involving the conversion of these tokens into popular crypto assets like Bitcoin. Meanwhile, the actions of Jerome Powell-led Federal Reserve (Fed) are also crucial as they affect all financial markets, including the crypto market.
As the world grapples with economic uncertainties, any decision made by the US apex bank will play a critical role in shaping the price of crypto assets. A series of impactful events have culminated in a substantial surge in Bitcoin’s price in a tumultuous week for the cryptocurrency market.
Macroeconomic Events
After recovering from a drop triggered by false ETF approval information earlier in the week, the leading digital currency rose from $28,138 on Thursday to over $30,000 during Friday’s trading session. This remarkable, bullish run resulted in a 12.3% gain in the last seven days.
According to Santiment analysts, the combination of the crypto market and macroeconomic events will continue to impact the crypto market till this month ends. This recent increase in Bitcoin’s value shows the token’s ability to withstand external factors. It underscores its position as a digital asset that often influences the price of other digital assets.
As market participants closely monitor these developments, the crypto industry anticipates more volatile movements from these crypto assets. Observers noted that each twist and turn may have weighty implications for the broader financial landscape.
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