Data shows sentiment around Bitcoin among social media users has turned negative following the recent decline in the cryptocurrency’s price.
Bitcoin Positive/Negative Sentiment Has Dropped RecentlyThe indicator works by putting posts/messages/threads containing mentions of the cryptocurrency on the major social media platforms through a machine-learning model to separate between bullish and bearish comments. It then counts up the number of posts falling in each category and takes their ratio to determine the net situation.
Now, here is the chart shared by Santiment that shows the trend in the Bitcoin Positive/Negative Sentiment over the past month:
As displayed in the above graph, the Bitcoin Positive/Negative Sentiment shot up into the “FOMO” zone earlier as the cryptocurrency’s recovery surge occurred. This isn’t anything unusual as positive price action tends to spark optimism among traders.
Historically, digital asset markets have often tended to go against the crowd opinion, so this switch to a bearish sentiment could actually turn out to be a positive sign for Bitcoin. “As small traders sell off their coins as a reaction to this mild downswing, probabilities of a rebound are heightened while most people expect a further drop,” explained the analytics firm.
Though, it’s visible in the chart that the Positive/Negative Sentiment isn’t yet inside the “FUD” zone where a bearish mentality becomes pronounced enough for rebounds to become probable.
From the chart, it’s apparent that there are now 20,229 wallets holdings at least 100 BTC (worth about $7.64 million). Compared to a year ago, this figure represents an increase of 11.2%. The analytics firm noted:
This is a significant long-term trend because wallets of at least this size (currently ~$7.7M or more) are often associated with whales, major investors, institutions, and highly capitalized long-term holders.
BTC PriceBitcoin has declined to the $76,400 level following its pullback of more than 5% over the past week.
