Bitcoin in Free Fall with Unprecedented Negative Sentiment
Prolonged Stagnation – June 22, 2024
Bitcoin is facing a rare storm of pessimism. Even though its price is hovering around $64,000, the crypto community seems gripped by persistent fear, uncertainty, and FUD (Fear, Uncertainty, and Doubt).
An Unusual Level of FUD Envelops Bitcoin
Bitcoin is currently at the center of negative sentiment on platform X, described as rare by industry experts. According to data from crypto intelligence platform Santiment, Bitcoin is experiencing a prolonged level of FUD, which is unusual for this asset.
“This prolonged level of FUD is rare, as traders continue to capitulate,” said Santiment on June 20. “Investors are primarily fearful or disinterested in Bitcoin as prices oscillate between $65,000 and $66,000,” added the platform.
Prolonged Stagnation
The numbers confirm this dismal trend. Bitcoin’s price has varied between $63,000 and $67,000 over the past week, according to CoinMarketCap data. Additionally, Santiment’s weighted sentiment index, which measures Bitcoin mentions on X and compares the ratio of positive to negative comments, has remained negative since May 23.
Past positive events, such as the approval of 11 Bitcoin exchange-traded funds in January and the April halving, had temporarily pushed the index to positive levels, reaching scores of 4.49 and 2.35 respectively. However, these positive sentiment peaks now seem distant as the crypto market goes through a phase of doubt and disinterest.
Moreover, the Fear and Greed Index, another key market sentiment indicator, currently shows a reading of Greed at 63, down 11 points over the past seven days. Despite this sentiment of stagnation, some analysts remain optimistic, believing that this consolidation could precede a dramatic rise.
