Data shows that hype around Bitcoin has remained low on social media lately, despite the asset’s latest all-time high. Here’s what this could mean for BTC.
Bitcoin sentiment on social media is still only slightly positive
In a new after on X, the analytics company Santiment talked about the recent trend in the Positive sentiment versus negative sentiment for Bitcoin. This metric, as the name suggests, tells us how positive sentiment compares to negative on social media platforms.
The indicator gets its data from the posts/threads/messages that appear on the major social media platforms (X, Reddit, Telegram and 4Chan). To differentiate between positive and negative comments, Statistics puts this data through a machine learning model devised by Santiment.
When the value of the indicator is greater than zero, it means that the number of positive messages related to BTC is currently greater than the negative ones. On the other hand, the fact that it is negative means that there is a bearish sentiment dominant on the social media platforms.
Here is the chart shared by the analytics company showing the trend in the Bitcoin Positive Sentiment vs. Negative Sentiment Ratio over the past month:
The value of the metric appears to have been positive in recent days | Source: Santiment on X
As shown in the chart above, the indicator has recently made a jump as the price of the cryptocurrency has hit a new all-time high (ATH) above the $94,000 level. This could indicate that sentiment on social media has shown an improvement.
However, as Santiment has highlighted in the chart, the current level of the metric is still only within the historical ‘neutral’ zone. In this zone, there is certainly some excitement among traders, but there is also some skepticism.
Historically, Bitcoin and cryptocurrencies in general have tended to move in a way that the masses have least expect. This means that excessive FUD (i.e. a low value of the benchmark) has led to bottoms for BTC, while euphoria (a high value) has resulted in tops.
Earlier this month, sentiment around the asset skyrocketed Trump became America’s 47th president. BTC’s local top coincided with this peak and only when sentiment cooled back to neutral could the price continue its upward climb.
During the latter stages of the rise, traders have not yet shown the same level of hype, so it is possible that the current Bitcoin rally still has room to grow before reaching a top.
“As long as there is disbelief among retail traders, whales can continue pumping cryptocurrencies with little resistance,” the analytics firm notes.
BTC price
At the time of writing, Bitcoin is trading around $93,600, up more than 6% in the past week.
Looks like the price of the coin has been marching up over the last few days | Source: BTCUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com