Bitcoin Sentiment Plummets as Price Sinks Below $64K: Potential Recovery on the Horizon

By Priyanka Jun 22, 2024 #Bitcoin
Bitcoin Sentiment Plummets as Price Sinks Below $64K

**Bitcoin’s Sentiment Plummets to ‘Negative’ as Price Slumps Below $64K**

The cryptocurrency market has been in the doldrums over the past few weeks, with Bitcoin (BTC) leading the decline. The world’s largest cryptocurrency has lost over 9% of its value in the last month, and it is now trading at its lowest level in five weeks.

**Extreme Negative Sentiment**

According to indicators tracked by analysis firm Santiment, crowd sentiment towards Bitcoin is now in its fourth week of “extreme negative” reading. This means that the vast majority of people are either fearful or disinterested in the cryptocurrency. This extended level of fear and uncertainty is rare, and it typically precedes a bounce in price.

“BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient,” Santiment said.

The firm’s Weighted Sentiment Index measures Bitcoin mentions on social media and compares the ratio of positive to negative comments and trading volumes to gauge what the crowd is generally feeling about the cryptocurrency. The index, which currently shows a -0.73 reading, has been negative since May 23.

**Declining Retail Interest**

Data from Google Trends also shows a decline in retail search interest for Bitcoin. This is another indication that people are losing interest in the cryptocurrency. The tool allows users to compare the relative volume of searches. A line trending downward means that a search term’s popularity relative to other popular terms is decreasing.

Worldwide searches for “Bitcoin” have steadily fallen since March 2024, according to data from Google Trends.

**Other Factors Contributing to Bitcoin’s Decline**

In addition to the negative sentiment, several other factors have contributed to Bitcoin’s recent decline. These include:

  • Large-scale selling by large holders
  • Strength of the U.S. dollar
  • A strong U.S. technology index market that may be drawing investor money
  • Outflow activity from U.S.-listed spot Bitcoin exchange-traded funds (ETFs)

**Outlook for Bitcoin**

Despite the recent decline, some traders remain bullish on Bitcoin’s long-term prospects. They believe that the cryptocurrency is still in a bull market, and that the recent sell-off is just a temporary setback.

However, other traders are more cautious. They believe that Bitcoin could fall further in the near term, possibly reaching the $60,000 level. They point to the lack of growth catalysts and the negative sentiment as reasons for their bearish outlook.

Only time will tell which side is correct. However, one thing is for sure: Bitcoin is a volatile asset, and it is important to invest only what you can afford to lose.

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