Bitcoin (BTC) rebounded over 5% on Dec. 21 as a dramatic turnaround within the fortunes of the Turkish lira boosted buyers’ confidence.
Hoping on a sentiment flip
The transfer got here as Turkey’s president, Recep Tayyip Erdoğan, introduced sweeping measures to guard customers and entice lira buyers. USD/TRY had beforehand hit all-time highs of close to 19, half of which had occurred within the final two months.
In an ironic twist, Erdoğan himself had come out against cryptocurrency in September, declaring Turkey to be “at battle” with the trade.
The switch-up fuelled Bitcoin and altcoins alike, with 5% features mirrored throughout the key cryptocurrency charts Tuesday.
Cointelegraph contributor Michaël van de Poppe was amongst analysts noting the correlation.
The precise motive?
Turkish Lira makes a powerful bounce.
— Michaël van de Poppe (@CryptoMichNL) December 20, 2021
“Good probabilities we’re completed with the correction,” he added in one among numerous Twitter posts about spot worth motion on the day.
“The longer we keep right here, the quicker the sentiment flips.”
A have a look at fashionable sentiment gauge the Crypto Fear & Greed Index mirrored modest aid coming into due to the uptick, the temper rising two factors to 27/100 or from “excessive concern” to “concern.”
Analysts eye evaporating unrealized features
Information protecting hodler habits, in the meantime, pointed to an impending watershed second repeating itself in terms of Bitcoin profitability.
Launched by monitoring useful resource Whalemap, it confirmed that BTC at a loss ought to quickly cross BTC being hodled with unrealized features. Traditionally, upside resumes when such crossovers happen.
— whalemap (@whale_map) December 20, 2021
“Not fairly there but however wanting promising,” the Whalemap group instructed Telegram subscribers, including in feedback to Cointelegraph that in precept, “the extra unrealized losses, the higher.”