Chit-chats about Bitcoin and cryptocurrency on social media platforms have drastically reduced despite the global money supply reaching a higher level. The masses are moving away from crypto for various reasons. Some are finding safer havens for investment, while others believe that the 4-year cycle is over, and many others are worried about centralization.
Social mentions about Bitcoin or cryptocurrency have drastically dropped. From showing 1 on its scale, the social metric risk factor has crashed to 0.1, as shown in the X post below. The social metric risk parameter used in the chart below shows the dependence of Bitcoin’s price on social media. Bitcoin prices and the crypto market as a whole move in unison with social mentions.
It means when the social mentions rise, the price of BTC rises in tandem, lifting the entire crypto market. However, this correlation has been dismantled, and the charts are moving in opposite directions.
The whole scenario gets weirder when the global liquidity is considered. So, think about it, the money supply is almost peaking at $150 trillion, but people are not interested in putting their money into crypto, but why?
Availability of safer havens
The US Dollar is strengthening against the Euro. As shown in the chart below, USD is in an uptrend, making higher highs and higher lows as it strengthens against the Euro. As the 50-day moving average (MA) approaches the 200-day MA from below, there could be a golden cross. Technically, when a golden cross occurs, a price spike occurs.
Gold is another asset that investors have turned to. It’s been rising since investors started buying the dip below $4,000.
Fear, Uncertainty, and doubt take over the market
The inherently volatile crypto market made jagged lines on the charts, with many external factors impacting it. Trump tariffs, Fed rate cuts, and geopolitics made the crypto market a hostile place for investors. In particular, the $20 billion liquidation caught the traders off guard, and some have moved their funds out of crypto into other assets.
Since that time, the overall sentiment in the market has been taken over by fear. CoinMarketCap’s Fear and Greed Index has not returned to neutral levels since the $20 billion liquidation.
BTC’s 4-year cycle is broken
There is less hype about crypto on social media as some analysts predict that the 4-BTC cycle is about to be broken. Buying into analysts’ claims that the Bitcoin cycle is broken, many investors are staying out of the crypto market.
According to a crypto analyst, it is a strategic move by institutional investors and whales. They take the market along these lines and silence the hype while they accumulate behind the scenes. So, given that this strategy works, the market will come alive all of a sudden.
