According to Cointelegraph: Bitcoin (BTC) has been experiencing an "extended level of FUD" (fear, uncertainty, and doubt) on the social media platform X, according to recent data from cryptocurrency intelligence provider Santiment. This rare level of negative sentiment comes as the cryptocurrency's price hovers around the $65,000 mark.
Key Highlights:
- Extended FUD Indicators: Santiment's Bitcoin social sentiment indicator has been flashing red, highlighting a prolonged period of fear and doubt among traders. "This extended level of FUD is rare, as traders continue to capitulate," Santiment noted in a June 20 post on X.
- Price Fluctuations: Bitcoin’s price has fluctuated between highs of $67,294 and lows of $64,180 over the past week, according to CoinMarketCap. Currently, Bitcoin (BTC) is trading at approximately $64,315.
Social Sentiment Metrics:
- Weighted Sentiment Index: Since May 23, Santiment’s Weighted Sentiment Index—a metric that measures Bitcoin mentions on X and the ratio of positive to negative comments—has remained negative. At the time of publication, the index stands at -0.738, indicating a predominantly negative sentiment towards Bitcoin on social media.
Market Analysis:
- Historical Context: Positive events for Bitcoin, such as the approval of 11 spot Bitcoin exchange-traded funds on January 10 and the Bitcoin halving on April 20, have historically spiked positive sentiment to levels of 4.49 and 2.35, respectively.
- Current Sentiment: Despite these historical uplifts, the current sentiment remains negative, with influential traders and analysts expressing a disinterested or fearful outlook. "Bitcoin is around 60 days into a ~150-day long sideways slog since the halving," noted Glassnode lead analyst James Check, known as "Checkmatey," in a June 19 post on X. Other analysts echoed this sentiment, describing the current market phase as "the most boring phase of the bull market."
Future Projections:
- Potential Upside: Some market analysts believe that the extended consolidation phase might pave the way for a significant price surge. "Generally, the longer a consolidation, the larger the expansion afterward," commented the pseudonymous crypto trader Daan Crypto Trades.
- Fear and Greed Index: Simultaneously, another sentiment gauge, the Fear and Greed Index, shows a Greed reading of 63, slightly down by 11 points over the past seven days. This index considers multiple factors, including social media sentiment, volatility, and market momentum.
Despite the current FUD and negative sentiment dominating social media discussions, market analysts suggest that the prolonged consolidation phase could signal a potential for a significant upside rally in the near future. As Bitcoin continues its sideways trading, the crypto community remains divided, with some seeing this as a precursor to a substantial market expansion.