Why is crypto down today?
The crypto market has started consolidating in the week between Christmas and New Years Day, after registering significant growth over the past month.
According to data provided by CoinGecko, the leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), have historically witnessed sideways movements with less bearish momentum at the start of the holidays in 2021 and 2022.
The broader crypto market also recorded slight declines during the end of December in the past two years.
Per CoinGecko, the global crypto market capitalization declined from a local high of $1.764 trillion on Dec. 25 to $1.728 trillion at the time of writing — recording a $36 billion decline.
On the other hand, data from the market intelligence platform Santiment shows that further bullish momentum could be on the way for the crypto ecosystem.
According to Santiment, calls for “buy the dip” dominate the crypto social activity on major social media platforms — with X leading the charge, followed by 4chan and Reddit.
Data shows that over 36% of the crypto conversations on social media include the term “buy the dip.”
Moreover, the terms “buy” and “bullish also have a 2.7% and 0.5% share, respectively. While the number of calls for “sell” has a 1.4% dominance on social media, only 0.1% of the mentions and posts included the term “bearish.”
The movements come as the global crypto trading volume registers a 14% surge over the past day, reaching $94 billion, per CoinGecko.
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