Why is crypto down today? Matrix report and other FUD

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According to data provided by CoinGecko, global crypto market capitalization has been down by 4.8% in the past 24 hours

Per Santiment, most bullish signals come from Reddit and X, while Telegram and 4chan also have a small share. 

The crypto market witnessed a sharp decline just hours after the Matrix Port report on Jan. 3. However, data shows investors believe this could be a local bottom.

According to data provided by CoinGecko, global crypto market capitalization has been down by 4.8% in the past 24 hours and is currently hovering around $1.73 trillion — registering a $70 billion decline. 

On the other hand, CoinGecko data shows that the 24-hour global crypto trading volume recorded a 95% rally over the past day — rising from $94 billion to $183 billion.

The marketwide decline came after Matrixport published its analysis claiming that the U.S. Securities and Exchange Commission (SEC) will reject all the Bitcoin (BTC) exchange-traded fund (ETF) applications this month.

Fidelity also files the registration of securities for its Bitcoin ETF with the SEC.

Just three hours after the Matrix Port report, Bitcoin witnessed a 10% decline from around $45,500 to $40,800. However, the flagship cryptocurrency registered a notable correction and trades at around $43,000. 

According to data provided by Santiment, the social media activity of the “sell” term witnessed a slight increase after the Matrix port proclamation and has cooled down as the market sees correction. 

Social trends data – Jan. 4 | Source: Sentiment

Moreover, data from Santiment shows a notable increase for the “buy” and “bullish” keywords, making up 3.3% and 0.5% of the global crypto conversations on social platforms, respectively. 

On the other hand, calls for “buy the dip” have increased significantly over the past 24 hours. On average, more than 37% of the social activity around the crypto ecosystem includes the “buy the dip” term.

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