Bitcoin’s (BTC) Dump Below $65K Fails to Fizzle Crowd Confidence: Santiment
Despite Bitcoin’s price dump, the frequency of words associated with optimism in trading is approximately two times higher than words associated with selling and bearishness.
The digital asset markets expanded substantially over the first quarter of 2024, catalyzed by an end to the decade-long effort to introduce spot Bitcoin ETFs in the US. While Q1 was a turning point in many ways, Q2 kicked off on a turbulent note.
Bitcoin’s plunge below $65K and the substantial decline in altcoins’ market caps is a concerning retracement as April unfolds. Despite this downturn, the crowd sentiment remains resilient.
Crowd Confidence
According to Santiment’s latest analysis, the crowd appears to be displaying confidence in the potential for a swift recovery.
The on-chain analytics firm found that the frequency of words associated with bullish sentiments, such as #buy, #buying, and #bought, are being echoed at approximately double the rate of their bearish counterparts like #sell, #selling, and #sold. Such a trend suggests a heightened optimism among investors.
In fact, Santiment’s historical data indicates that the best opportunities for buying during market dips occur when there’s a sense of uncertainty among investors about potential further declines. This sentiment shift typically sees smaller investors offloading their holdings, allowing larger entities like whales and sharks to capitalize on the market dip.
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