Optimism Still High on Social Media
The latest data from Santiment shows that social media users continue to be bullish about cryptocurrency. The “social volume” indicator measures the total number of unique social media posts mentioning a specific term, providing insight into user behavior across platforms.
If the metric has a high value, it indicates that a large number of users are discussing the term. Santiment analyzed social media posts about Bitcoin and cryptocurrency, calculating the social volume of sentiment-related terms such as buy, bought, sell, and bottom.
Recent trends show that bullish sentiment is dominant, historically leading to sideways or declining market conditions. This pattern has been observed recently as well, with FOMO driving cryptocurrencies down or causing them to stagnate.
Effect on Market Conditions
Dominant bearish sentiment can lead to rebounds in the market. For example, when Bitcoin saw a pullback from near $38,000 to below $36,000, social media panic actually worked to the benefit of the market as the coin quickly rebounded.
As long as social media users remain enthusiastic about the sector, an upward move for BTC and others is unlikely. Whether sentiment will calm down in the coming days remains to be seen, potentially allowing for a further rally.
Bitcoin Price Pullback
Bitcoin has experienced a pullback towards the $36,200 level in the past day.
Hot Take
Social media optimism about cryptocurrencies could be negatively impacting Bitcoin’s price as historical trends suggest that periods of bullish sentiment do not necessarily lead to price rises. As FOMO drives social media users’ enthusiasm for Bitcoin and other cryptocurrencies, it remains uncertain whether this sentiment will subside and allow for a potential rally or if it will result in further market volatility.
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