What the data tells us

Today is a rough day in the crypto markets, with almost every coin experiencing heavy decline. Some good news from the data standpoint is that we're observing a significant increase in social volume combined with negative sentiment balance, which is a good combination for a bottom to form.

Important observations

MSTR is in a hot seat today, with the stock declining almost 5%, and for the first time in a long time its marketcap went below the Bitcoin holdings value. This attracted a lot of attention, and the sentiment that I'm observing on social media is mostly negative. At the same time, their biggest preferred stock STRC managed to keep above par value of $100 for almost the whole trading day, and attracted more than $150M of trading volume, which will be even higher as the US trading session is still ongoing. This has a serious chance to create a temporary bullish narrative for BTC, even if it's not sustainable long-term in my opinion.

Coins in the spotlight

Just moments ago a new treasury company was announced, this time focused on ZEC, which immediately went up more than 10% on the news.

Conclusion

From personal observations, the prevailing sentiment right now is deeply negative, with focus on the cycle being over, MSTR going below NAV, terrible performance of crypto relative to equities. Even though some or all of those points very well might be valid, it still likely points to an extremity of the market, so I'm looking to see some kind of a recovery in the near future.