Almost half of all cryptocurrency-related mentions on social media this week focused on Bitcoin, as it reached new highs, a level of dominance that may indicate a local top and a possible short-term pullback, according to the sentiment platform Santiment.
"As Bitcoin's market value surpassed $123,100 for the first time in its more than 17-year history, there was an equally historic increase in social dominance," said Santiment analyst Brian Quinlivan in a report on Wednesday.
"43.06% of all cryptocurrency conversations revolved around $BTC just as the market value of the coin was peaking," Quinlivan added. Quinlivan stated that "the sudden increase indicated that many retail investors were entering the market for fear of missing out," which contradicts the view of other sector participants who believe that retail investors have not yet entered the market.
On July 11, Bitwise's head of research, André Dragosch, said that Bitcoin is at new all-time highs, but retail trading "is hardly found anywhere."