Bitcoin's Social Dominance Tanks Over 30% As Price Dips Below $42K, LunarCrush Data Reveals

Bitcoin BTC/USD momentarily dipped under the $42,000 mark on Sunday evening. The apex cryptocurrency plummeted from $43,357 to an intraday low of $41,800 within just 20 minutes.

What Happened: Data from LunarCrush reveal a decline in Bitcoin’s social metrics as well. In the last 24 hours, Bitcoin’s social dominance has decreased by 30%, with social engagement also taking a 35% hit, now standing at 7.29 billion interactions.

Social dominance measures a cryptocurrency’s “share of voice” by comparing its social media volume to that of the entire crypto market, according to LunarCrush. Social engagement reflects the total interactions with posts, encompassing actions such as retweets and comments.

This comes on the heels of a severe drop leading to the liquidation of long positions exceeding $270 million in value. 

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Why It Matters: Despite these market fluctuations, it’s worth noting that Bitcoin has soared over 150% since the start of the year. This has largely been fueled by anticipation surrounding the Securities and Exchange Commission’s (SEC) potential approval of multiple spot Bitcoin exchange-traded funds (ETFs), which could enable major institutional investors to gain substantial exposure to Bitcoin for the first time.

Bitcoin’s ascent has also been supported by broader market expectations that the Federal Reserve might begin to scale back interest rates midway through 2024.

Price Action: At the time of writing, BTC  was trading at $42,149, down 4.21% in the last 24 hours, according to Benzinga Pro. 

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