Social media sentiment influences Bitcoin’s price, with fear leading to upward movement.
Bitcoin wallet inflows suggest growing investor confidence and strong demand.
Active wallets increasingly signal bullish market sentiment as Bitcoin nears $100K.
Beware the hype on social media. New data from Santiment reveals a concerning correlation between Bitcoin’s price and the emotions of retail traders.
This correlation is evident in the $90K-$99K, $100K-$109K, and $110K-$119K price ranges. When Bitcoin’s price was between $90,000 and $100,000, mentions of Bitcoin increased around the $100K-$109K range.
Bitcoin has scratched its way back to a high of $99.8K to kick off the new week. However, based on the huge spike in mentions of $110K+ BTC from 2 weeks ago, it appears traders are still awaiting much higher prices before getting too excited.
Crypto prices nearly always move… pic.twitter.com/1VjfJxTVb9
— Santiment (@santimentfeed) January 6, 2025
This period coincided with heightened “Crowd Fear,” a sentiment driven by retail sellers looking to exit their positions. History shows that such fear-driven selling often increases Bitcoin’s price as buy o…
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