Altcoins Bitcoin Cash (BCH) and Loopring (LRC) are currently facing significant FUD, with traders shorting these assets on the futures market on Binance. According to data from on-chain analytics firm Santiment, the funding rate for these altcoins has been negative recently, indicating a bearish sentiment among traders. However, this negative sentiment could actually benefit the prices of these altcoins, as shorts may find themselves liquidated, providing a potential boost to their prices.
Bitcoin Cash, in particular, is facing a high level of FUD on Binance, and with the asset showing signs of a turnaround, a mass liquidation event known as a “squeeze” could occur, leading to a sharp price increase. Santiment suggests that if the market recovery continues, the shorts on these altcoins could end up providing “rocket fuel” to their prices.
In addition to Bitcoin Cash and Loopring, Glassnode has analyzed the performance of different altcoin segments against Bitcoin in its latest weekly report. The firm has divided the sector into four indexes – DeFi, GameFi, Scaling, and Staking indexes. The chart provided in the report shows that all these altcoin indexes have seen an increase since the approval of the Bitcoin spot ETF earlier in the month, indicating a rise in risk appetite for altcoins among market participants.
Following its recent turnaround, Bitcoin Cash has seen a price recovery back towards the $238 level. If the current market recovery continues, Bitcoin Cash and other altcoins facing FUD could potentially experience a significant price increase. The charts provided by Santiment and Glassnode offer insights into the market sentiment towards these altcoins and their potential for growth in the near future.
In conclusion, altcoins like Bitcoin Cash and Loopring are currently facing significant FUD, with traders shorting these assets on Binance. However, this bearish sentiment could end up benefiting the prices of these altcoins if a market recovery occurs. The charts provided by Santiment and Glassnode offer valuable insights into the market sentiment towards these altcoins and their potential for growth. As the market continues to evolve, it will be interesting to see how these altcoins perform in the coming days and weeks.
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