Data shows that sentiment around Bitcoin among social media users has turned negative following the cryptocurrency’s recent price decline.
Bitcoin positive/negative sentiment has fallen recently
In a new article on X, analytics firm Santiment discussed the latest trend in positive/negative sentiment for Bitcoin. This metric tells us whether the majority of social media comments aimed at a given asset are positive or negative.
The indicator works by placing posts/messages/threads containing mentions of the cryptocurrency on major social media platforms via a machine learning model to separate bullish and bearish comments. It then counts the number of positions falling into each category and takes their ratio to determine the net worth.
Now here is the chart shared by Santiment that shows the Bitcoin positive/negative sentiment trend over the past month:
As seen in the chart above, Bitcoin’s positive/negative sentiment climbed into the “FOMO” zone earlier as the cryptocurrency’s recovery wave occurred. This is nothing unusual, as positive price action tends to spark optimism among traders.
The opposite trend occurred as the asset suffered its latest pullback. Positive/negative sentiment has now fallen to a value of 0.94, suggesting that bearish comments are slightly dominating on social media platforms. This is the lowest level since April 21.
Historically, digital asset markets have often tended to go against public sentiment, so this shift to bearish sentiment could actually prove to be a positive sign for Bitcoin. “As small traders sell off their coins in reaction to this slight decline, the odds of a rebound are increased as most people expect a further decline,” the analytics firm explained.
However, it is visible on the chart that the positive/negative sentiment is not yet inside the “FUD” zone where a bearish mentality becomes pronounced enough that rebounds become likely.
Furthermore, Bitcoin whales have seen their wallet numbers increase over the past year, as Santiment highlighted in another X article.
From the chart, it is clear that there are now 20,229 wallets containing at least 100 BTC (worth approximately $7.64 million). Compared to a year ago, this figure represents an increase of 11.2%. The analytics company noted:
This is an important long-term trend, as portfolios of at least this size (currently ~$7.7M or more) are often associated with whales, major investors, institutions, and highly capitalized long-term holders.
BTC Price
Bitcoin fell to the $76,400 level after a decline of more than 5% over the past week.
