Sentiment towards Bitcoin has declined to its lowest levels in recent weeks: Is it time for a rebound?
Sentiment towards Bitcoin has declined to its lowest levels in recent weeks: Is it time for a rebound? Sentiment towards Bitcoin has declined to its lowest levels in recent weeks: Is it time for a rebound?
Investor sentiment towards Bitcoin has dropped to its lowest level since April, reflecting a wave of pessimism coinciding with increasing economic and geopolitical concerns.
According to data from the Santiment platform, negative comments outnumbered positive ones on social media by a ratio of 1.03 to 1, which is historically considered a contrarian indicator that can precede a bullish move.
This decline in confidence mimics a similar pattern in April when the price fell below $75,000 due to worries over U.S. trade decisions, before recovering as the panic subsided.
Santiment indicates that the market often moves against the trends of retail traders.
With Bitcoin's price currently stable below $105,000, there has been little reaction to the Federal Reserve's decision to keep interest rates unchanged, losing 0.3% over 24 hours and 2.8% over the week.
These weak moves come amid global tension, where analysts have warned that escalating conflicts in the Middle East could lead investors to favor safe assets over cryptocurrencies.
Despite this, the fundamental indicators remain positive.
Bitcoin's unspent holdings continued to grow, reflecting long-term confidence from investors, while Bitcoin exchange-traded funds saw strong inflows exceeding $1.4 billion over the week, indicating ongoing institutional interest in the digital currency despite current challenges.
