Data shows that hype around Bitcoin has remained low on social media recently despite the asset’s recent track record. Here’s what this could mean for BTC.
Bitcoin sentiment on social media remains fairly positive
In new mail On X, analytics firm Santiment discussed the recent trend in the positive versus negative sentiment ratio for Bitcoin. This metric, as its name suggests, tells us how positive sentiment compares to negative sentiment on social media platforms.
The indicator derives its data from posts/topics/messages appearing on major social media platforms (X, Reddit, Telegram, 4Chan). To differentiate between positive and negative comments, the metric puts this data through a machine learning model created by Santiment.
When the indicator value is greater than zero, it means that the number of positive posts related to BTC currently outnumbers the negative posts. On the other hand, being negative means that there is a bearish sentiment prevailing on social media platforms.
Now, here’s the chart shared by the analytics company that shows the trend in the ratio of positive sentiment versus negative sentiment over the past month or so:
The value of the metric appears to have been positive in recent days | Source: Santiment on X
As shown in the chart above, the index saw a jump recently as the price of the cryptocurrency reached a new all-time high (ATH) above the $94,000 level. This would indicate that sentiment on social media has improved.
As Santiment points out in the chart, the current level of the gauge is still just within the historical “neutral” zone. In this area, there is definitely some excitement among traders, but there are also some doubts.
Historically, Bitcoin and cryptocurrencies in general have tended to move in a way that the public would never expect. This means that excessive FUD (i.e. a low value of the scale) led to bottoms for BTC, while euphoria (a high value) led to tops.
Earlier in the month, sentiment around the asset rose dramatically as Trump became America’s 47th president. BTC’s local top coincided with this rally and the price was able to continue its rise only after sentiment cooled to neutral.
During the recent bull run, traders have yet to show any noise near the same degree, so it’s possible that Bitcoin’s current rally still has room to grow before the top.
“As long as there is disbelief in retail traders, whales can continue to pump cryptocurrencies with little resistance,” the analytics firm notes.
Bitcoin price
At the time of writing, Bitcoin is trading at around $93,600, up more than 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