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- Crypto sentiment shifts as Bitcoin’s price drop signals a possible market bottom.
- Social media sentiment on Bitcoin turned negative as its price continued to fall.
- Large ETF outflows indicate potential market bottoms, triggered by retail panic.
The crypto market is facing uncertainty as Bitcoin briefly fell below $95,000 on Friday. Santiment, a leading crypto sentiment platform, warns that market lows rarely occur when analysts and traders expect them. The platform cautions that true market bottoms often happen when most believe prices will continue to decline. Traders should be cautious when consensus about a price bottom starts to form.
This decline in the price of Bitcoin was in line with an overall downward trend of technology stocks. The decline sparked off a frenzy of debates in the social media, as many traders assumed that the worst was over.
Santiment, however, argues that this optimism is usually a sign of more bad. The market bottom is usually marked when psychological price levels, such as Bitcoin dropping below 100,000, are violated. More drops in prices have followed this in the past.
Crypto Optimists Predict Bitcoin’s Rise Amid Market Pessimism
Even amid the pessimistic movement, there are notable stakeholders within the crypto scene who are optimistic. BitMEX co-founder Arthur Hayes and BitMine chair Tom Lee both continue to predict that Bitcoin may and will rise to $200,000 or more in the course of the year. Their views are in a striking contrast to the mood in the modern market, revealing how volatile the crypto world can be.
Source: Santiment
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Santiment observed another major change in social media sentiment as well. The number of positive to negative comments on Bitcoin has decreased to a new low in the last month. The social dominance of Bitcoin increased to more than 40% as the prices of the Bitcoin dropped, which implies that it is the primary subject of a fearful discussion.
Saylor Denies Bitcoin Sell-Off Amid $1.17 Billion ETF Outflows
Many traders associated the decline in Bitcoin’s price with Google, especially in light of the situation involving Michael Saylor, the new chair of Strategy. When it was rumored that Saylor Company had sold off Bitcoin, Michael Saylor gained significant attention on social media. But Saylor refuted these allegations in an interview with CNBC on Friday, denying rumors that his business was selling Bitcoin with the decline in price.
Santiment pointed out that the market could be at the bottom when the Bitcoin ETF outflows are large. The site elaborated that massive ETF outflows tend to show the bottoms of the market as a result of the retail panic.
Over the three trading days, the US-based spot Bitcoin ETFs have recorded outflows of $1.17 billion, and on Thursday, the outflow of $866 million was the second-heaviest outflow day ever.
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