$BTC Social media sentiment influences bitcoin exchange rate, Santiment says

In a new report, analysts at Santiment have traced the relationship between the sentiment of social media users and the value of bitcoin.

This trend is especially noticeable in the price ranges of $90,000 to $99,000, $100,000 to $109,000 and $110,000 to $119,000. So, while bitcoin was at $90,000-$100,000, social media started posting more frequently about the $100,000-$109,000 rate.

At the start of the new week, bitcoin returned to a high of $99,800. However, judging by the surge in mentions of the coin at over $110,000 two weeks ago, traders are still waiting for a higher rate. In this case, cryptocurrency prices are almost always changing,” Santiment said in a report.

An increase in “crowd fear,” or sentiment where retail traders actively close out their positions, causes bitcoin's price to rise, the analysts explained.

In addition, fluctuations in the bitcoin exchange rate are linked to changes in cryptocurrency wallet balances. For example, in July 2024, the inflow of funds into BTC rose sharply, which coincided with the asset's rally.

Along with social media sentiment, blockchain data also provides insight into bitcoin price dynamics. Between February and November 2024, the number of active BTC addresses increased and peaked in early winter, indicating a bullish market sentiment.

On the evening of January 6, the bitcoin price surpassed the $100,000 threshold and reached the $102,000 mark.