Why is the current sentiment around Bitcoin so negative?

Sat 22 June 2024 ▪ 3 minute read ▪ by Luc Jose A.

Bitcoin, often seen as the barometer of the health of the cryptocurrency market, is facing a rare storm of pessimism. Despite its price hovering around $64,000, the cryptocurrency community seems gripped by persistent fear, uncertainty and FUD.

An unusual level of FUD envelops Bitcoin

Bitcoin is currently at the center of a storm of negative sentiment on Platform X (formerly Twitter), a situation described as rare by industry experts. According to data from crypto intelligence platform Santiment, the queen of cryptocurrencies is experiencing a prolonged level of FUD (Fear, Uncertainty, Doubt), which is unusual for this asset.

“This sustained level of FUD is rare, as traders continue to capitulate,” Santiment said in a June 20 post. “Investors are mostly fearful or disinterested in Bitcoin as prices fluctuate between $65,000 and $66,000,” the platform added.

Prolonged stagnation

The numbers confirm this sad trend. Second CoinMarketCap data. Additionally, Santiment’s weighted sentiment index, which measures Bitcoin mentions on X and compares the ratio of positive to negative comments, has remained negative since May 23.

Positive events in the past, such as the approval of 11 Bitcoin exchange traded funds in January and the halving in April, had temporarily pushed the index to positive levels, reaching scores of 4.49 and 2.35 respectively. However, these peaks of positive sentiment now seem distant as the cryptocurrency market goes through a phase of doubt and disinterest.

Additionally, the Fear and Greed Index, another key indicator of market sentiment, currently shows a greed reading at 63, down 11 points over the past seven days. Despite this feeling of stagnationsome analysts remain optimistic, believing that this consolidation could precede a dramatic rally.

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Luc Jose A.

Graduated in Science Po Tolosa and holder of a blockchain certification consultant issued by Alyra, I returned to participate in Cointribune in 2019. Capturing the potential of blockchain to transform numerous sectors of the economy, I have made a commitment to raise awareness and inform the great public about this constantly evolving ecosystem. My goal is to allow anyone to better understand blockchain and learn about the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to convey the latest technological innovations and to put into perspective the economic and social efforts of this revolution in brands.

DISCLAIMER

The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.

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