Jim Cramer’s Tweet Sparks Controversy In Crypto World

Key Points:

• Cryptocurrencies, European stocks, and U.S equity futures fall amid fears of rising interest rates due to high U.K. inflation.
• Bitcoin falls by 5% to $29,465, hitting its psychological $30,000 mark.
• Sell-off caused $237 million long positions to be liquidated across exchanges.

Jim Cramer – The financial markets experienced a downturn as a result of concerns about interest rates in light of persistently high U.K. inflation.

Cryptocurrencies, European stock, and U.S. equity futures all felt the effects of this decline. In particular, Bitcoin, the leading cryptocurrency, fell below the $30,000 mark, causing alarm among investors. While it initially dropped as much as 5%, it has since traded at about $29,465 at the time of this writing. Other cryptocurrencies, such as Solana and Avalanche, saw even greater declines than Ethereum, which lost 7%. The sudden drop in value of these cryptocurrencies led to the liquidation of long positions valued at $237 million across exchanges, according to statistics from Coinglass.

In response to this development, some financial analysts have taken to social media to express their thoughts. Jim Cramer, the host of CNBC’s Mad Money, commented on Twitter that the market was “getting near being oversold.” Many investors are now closely monitoring the situation to see how it will develop and whether they need to adjust their investment strategies in light of these new concerns.

Crypto market still in disbelief

According to on-chain analytics firm Santiment, social metrics and funding rates are showing contrary stories at the moment, as the trading crowd tries to navigate crypto’s tight range.

In a blog post, it notes that the number of people participating in discussions on Twitter, Discord, Telegram, and Reddit has decreased compared to the start of the year. This drop might imply that the crowd does not know what to think. However, it is worth noting that despite the decrease in the number of people participating, the discussions that are taking place are more in-depth and technical, which could indicate that there is a more knowledgeable and informed crowd. Nevertheless, in general, falling crowd interest despite rising prices typically denotes that there is some disbelief going on.

With around a year until Bitcoin’s eagerly anticipated halving, Q1 was an incredible trip for crypto bulls, with Bitcoin surging from $3,800 in January to over $10,000 in February. However, now the crypto market must watch out for the social metrics and funding rate to decide whether Q2 will be a continuation of this bullish trend. It is important to note that the funding rate for Bitcoin futures contracts on BitMEX has been in decline since February, which could indicate that traders are becoming less bullish. Nevertheless, the funding rate for other exchanges such as Binance and Huobi has remained relatively stable, which suggests that traders on these platforms are still bullish on Bitcoin.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

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