Recent data indicates that the positive sentiment surrounding Bitcoin has surged on social media following BTC’s rise above $58,000, suggesting that investors may be experiencing FOMO.
Recent Spike in Bitcoin Positive vs. Negative Sentiment Ratio
Data from the analytics company Santiment reveals a notable increase in optimism within the community regarding Bitcoin. The key metric here is the “Positive Sentiment vs. Negative Sentiment Ratio,” which, as the name implies, monitors the balance between positive and negative comments about the coin on social media.
The analytics firm gathers posts, threads, and messages from platforms such as Twitter, Reddit, Telegram, and 4Chan. To assess the sentiment of these posts, Santiment employs a machine-learning model.
An indicator value above 1 signifies that positive sentiments outnumber negative ones, whereas a value below this threshold indicates a predominance of negative sentiment among social media users.
Below is a chart illustrating the trend of the Positive Sentiment vs. Negative Sentiment Ratio for the leading two cryptocurrencies, Bitcoin and Ethereum, over the past several months:
The chart above shows a significant surge in the positive sentiment compared to negative sentiment for Bitcoin following the recent recovery in the cryptocurrency market.
This spike reached a point where the volume of positive posts was double that of negative ones across major social media platforms, marking the first instance of such a high level for this indicator.
While this signals bullish sentiment among investors, the scale of optimism could be a red flag. Historically, BTC has often moved contrary to the prevailing expectations, and the likelihood of a reversal increases as confidence within the crowd grows.
Given that the upsurge in positive sentiment emerged after only a modest increase in price, it seems that FOMO may be influencing the market prematurely, potentially leading to a peak for Bitcoin. Regarding the timing for BTC’s potential bullish resurgence, the analytics firm comments:
Watch for traders to “slow their roll” and start expressing FUD once more. When the crowd begins to exhibit doubt, BTC will genuinely start to test the market values of its all-time high from March.
Interestingly, while FOMO about Bitcoin is rampant on social media, users still exhibit only a moderate level of optimism towards Ethereum, which could be advantageous for ETH’s price movement.
BTC Price
Bitcoin has struggled to maintain a consistent move above $58,000, with the price facing another rejection today, dropping to $57,800.
