Bitcoin (BTC) has had a rough start to March, with its price down 6% for the month so far. Despite this, the cryptocurrency market leader is still outperforming most of the altcoins in the market, according to a tweet by Santiment. Traders and investors are now turning their attention to BTC as the market loses some of its gains from January and February.
Santiment’s tweet suggested that BTC’s social dominance, which is at its highest level since September 2022, has historically been a key factor in identifying a market rebound. As a result, there is speculation that a market rebound may be on the cards for the crypto market in the coming weeks.
BTC Faces Economic Data Releases
However, BTC will have to overcome some economic data releases this week, including the US unemployment rate and the Fed’s testimony. These data releases are expected to have a negative impact on the crypto market, and some analysts have even predicted that BTC’s price may drop to as low as the $19.5K zone.
At the time of writing, CoinMarketCap shows that BTC’s price has dropped 1.99% over the last 24 hours and is currently trading at $22,008.52. This 24-hour price drop has contributed to BTC’s negative weekly performance, with its price down 7.15% over the last 7 days.
On the bright side, the daily trading volume for BTC has seen a 55.11% increase over the last 24 hours and currently stands at $24,220,725,036. However, it remains to be seen whether BTC can weather the storm of economic data releases this week and continue to outperform most of the altcoins in the market.
Conclusion
BTC’s social dominance reaching its highest level since September 2022 has led to speculation that a market rebound may be on the horizon for the crypto market. However, economic data releases such as the US unemployment rate and the Fed’s testimony may negatively impact BTC’s price in the short term. Traders and investors will be watching BTC closely to see how it fares in the face of this economic data. As always, readers are advised to do their own research and due diligence before taking any action.
