Data shows that sentiment around Bitcoin among social media users has turned negative following the recent decline in the cryptocurrency’s price.
Bitcoin’s positive/negative sentiment has dropped recently
In a new after on X, analytics firm Santiment discussed the latest trend in positive/negative sentiment for Bitcoin. This measure tells us whether the majority of social media comments targeting a particular item are positive or negative.
The indicator works by posting posts/messages/threads containing mentions of the cryptocurrency on major social media platforms via a machine learning model to differentiate between bullish and bearish comments. Then it counts the number of messages that fall into each category and takes their ratio to determine the net situation.
Here is the chart shared by Santiment showing the trend in Bitcoin Positive/Negative Sentiment over the past month:
As shown in the chart above, Bitcoin’s positive/negative sentiment previously shot into the “FOMO” zone when the cryptocurrency’s recovery wave took place. This is nothing unusual, as positive price action tends to generate optimism among traders.
The opposite trend occurred when the asset experienced its latest pullback. The positive/negative sentiment has now dropped to a value of 0.94, indicating that bearish comments are somewhat dominating on social media platforms. This is the lowest level since April 21.
Historically, digital asset markets have often tended to go against the public’s view, so this switch to bearish sentiment could actually be a positive sign for Bitcoin. “As retail traders sell off their coins in response to this mild downturn, the chances of a recovery are increasing, while most people expect a further decline,” the analytics firm explains.
However, it is visible from the chart that the positive/negative sentiment is not yet within the ‘FUD’ zone, where a bearish mentality becomes so pronounced that rebounds become likely.
In other news, Bitcoin whales have seen their portfolio numbers soar over the past year, as Santiment highlighted in another X. after.
The graph shows that there are now 20,229 wallets holding at least 100 BTC (worth approximately $7.64 million). Compared to a year ago, this represents an increase of 11.2%. The analytics company noted:
This is an important long-term trend because portfolios of at least this size (currently ~$7.7 million or more) are often associated with whales, large investors, institutions, and highly capitalized long-term holders.
BTC price
Bitcoin has fallen to the $76,400 level after falling more than 5% in the past week.