Data shows that social media buzz surrounding Bitcoin has remained low recently, despite the asset’s recent record high. Here’s what this could mean for BTC.
Bitcoin sentiment on social media remains moderately positive
In the modern one post on X, analyst firm Santiment discussed the latest trend in the positive and negative sentiment ratio for Bitcoin. This metric, as the name suggests, tells us how positive sentiment compares to negative sentiment on social media platforms.
The indicator obtains data from posts/threads/messages appearing on major social media platforms (X, Reddit, Telegram and 4Chan). To differentiate between positive and negative comments, the metric runs this data through a machine learning model developed by Santiment.
When the value of the indicator is greater than zero, it means that the number of positive BTC-related posts currently exceeds the number of negative ones. On the other hand, its negative nature means that a bearish mood dominates social media platforms.
Here is a chart provided by the analytics firm that shows the trend in the ratio of positive sentiment to negative sentiment towards Bitcoin 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 recently rose as the cryptocurrency’s price reached a modern all-time high (ATH) above the $94,000 level. This would suggest that the mood on social media has significantly improved.
However, as Santiment highlighted in the chart, the current level of this indicator is still only within the historical “neutral” zone. There is certainly some excitement among traders in this zone, but there is also some skepticism.
Historically, Bitcoin and cryptocurrencies in general have tended to move in ways that the crowd least expected. This means that excessive FUD (i.e. low value of the metric) led to lows for BTC, while euphoria (high value) led to highs.
At the beginning of the month, sentiment around the asset surged as Trump became America’s 47th president. BTC’s local high coincided with this spike, and it was only when sentiment dropped back to neutral that the price could continue to rise.
During the recent rally, investors have yet to show hype to a similar degree, so it’s possible that Bitcoin’s current rally still has a chance to grow before its peak.
“As long as retail trader distrust exists, whales can continue to pump cryptocurrencies with little resistance,” the analyst firm notes.
BTC price
At the time of writing, Bitcoin is trading at around $93,600, up over 6% over 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
