- Social media metrics suggest crypto followers are beginning to adopt a bearish attitude on bitcoin’s price trajectory.
- Historically, bearish crowd sentiment has been observed at market bottoms.
“The common people often make mistakes. True wisdom lies in going against the crowd’s actions.”
In simpler terms, just like traditional markets, the crypto community is growing more pessimistic about Bitcoin’s price, which could indicate that the recent drop in Bitcoin’s value might be nearing its end.
Historically, mass traders have tended to expect prices to go one way, but they have typically moved in the opposite direction, according to Santiment’s analysis in a recent market update. The market might experience a bottom around the upcoming halving event, which is due in the next two days, or shortly after it occurs.
According to Santiment’s data, the frequency of “bull market” or “bull cycle” terminology in crypto social media conversations has decreased significantly since late March. In contrast, there has been a consistent rise in the use of “bear market” or “bear cycle” language during the same period.
Santiment’s Social Trends tool monitors conversations on Telegram, Reddit, X, and 4Chan to detect popular keywords and subjects generating buzz.
Based on cryptocurrency enthusiasts’ perspective, the bull market for Bitcoin and other cryptos may have concluded following a significant decrease of around 16% in value since Bitcoin reached its all-time high of $73,600 on March 14th. Concurrently, references to a bear market are becoming more frequent, according to Santiment’s analysis.
An decrease in the number of instances of the term “buy the dip” suggests that retail investors’ optimism for a quick recovery and prolonged bull market, often referred to as “hopium” in crypto circles, may be waning. Historically, such a decline has signaled the end of bear markets.
Bitcoin has experienced a significant decline in value this month due to several factors. The possibility of the Federal Reserve not reducing interest rates any further, increasing geopolitical conflicts, and the approaching deadline for U.S. tax payments have all contributed to this downward trend, causing the price to drop by approximately 14%.
Yesterday, Bitcoin, the most valuable cryptocurrency, dipped below $60,000 before bouncing back to around $61,200 at the time of reporting. The CoinDesk 20 Index, which tracks the top 20 digital assets based on market capitalization, has experienced a 24% decrease in value this month.
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2024-04-18 11:39