Bitcoin Social Sentiment Stays Bearish Even As Price Recovers From $60,000 Drop
Data exhibits the social media sentiment round Bitcoin has remained deeply bearish regardless of the restoration that the cryptocurrency’s value has made.
Social Media Data Suggests Retail Still Fearful About Bitcoin
In a brand new post on X, analytics agency Santiment has mentioned about how the Positive/Negative Sentiment for Bitcoin has developed on social media following the latest restoration surge within the asset’s value.
The Positive/Negative Sentiment refers to an indicator that tells us, as its identify suggests, how the optimistic and damaging sentiments associated to a given asset examine on the most important social media platforms.
The metric works by placing social media posts/threads/messages containing mentions of the asset by a machine-learning mannequin to distinguish between optimistic and damaging feedback. Then, it counts up the variety of posts in every class and finds their ratio.
When the worth of the indicator is larger than 1, it means the asset is observing extra bullish messages than bearish ones. On the opposite hand, the metric being below this threshold implies the dominance of a damaging sentiment.
Now, right here is the chart shared by Santiment that exhibits the development within the Positive/Negative Sentiment for Bitcoin over the previous couple of months:
As is seen within the above graph, the Bitcoin Positive/Negative Sentiment rose to a notable degree when the asset noticed its rally in January. This means that retail merchants on social media grew to become grasping.
What finally adopted the market greed was a high within the cryptocurrency and a reversal to the draw back. As this drawdown took BTC again to the $60,000 degree, the Positive/Negative Sentiment plummeted, which means that concern now dominated social media platforms.
Just like how the grasping sentiment led right into a high, this bearish mentality paved method for a rebound as a substitute. This is a sample that has been witnessed with digital asset markets time and time once more, with costs tending to maneuver in opposition to the expectations of the group.
Interestingly, though BTC has climbed again into the high $60,000 ranges since its low, the Positive/Negative Sentiment has continued to be at low ranges. “Historically, whereas FUD is high, value rebounds have a heightened likelihood,” famous the analytics agency. It now stays to be seen how Bitcoin will develop within the close to future, given the present bearish sentiment.
In another information, the stablecoin market cap has dipped not too long ago, as Capriole Investments founder Charles Edwards has highlighted in an X post.
Edwards has identified that the stablecoin market cap has traditionally solely fallen in bear markets. If the latest trajectory of the mixed USDT and USDC market cap is to go by, capital could as soon as once more be leaving this aspect of the sector.
BTC Price
Bitcoin recovered above $70,000 earlier, however the coin has since retraced a bit as its value is now buying and selling round $67,700.
