Bitcoin Bull Run Unlikely Amid High Social Sentiment
Market Sentiment and Bitcoin’s Performance
Currently, Bitcoin enthusiasts might need to temper their expectations for a new all-time high. Social media sentiments are at their zenith, according to data from the onchain analytics platform, Santiment. As of September 30, the platform observed that for every bearish post about Bitcoin, there are 1.8 bullish ones. Historically, markets tend to move in the opposite direction of the general crowd’s expectations.
Social Media’s Influence on Bitcoin
In recent weeks, the sentiment on social media has turned highly optimistic. Bitcoin prices have shown a significant climb of about 14%, rising from below $58,000 on September 17 to over $66,000 by September 28. This has led Bitcoin to record its best September in terms of gains, reaching approximately 12%.
Mainstream Media and Bitcoin Sentiment
Casa’s chief security officer, Jameson Lopp, noted a positive shift in mainstream media’s portrayal of Bitcoin. He mentioned that fear, uncertainty, and doubt (FUD) surrounding Bitcoin are losing their impact over time. This shift is further supported by the Bitcoin Fear and Greed Index, which has moved from extreme fear levels of 22 on September 6 to a greed level of 61 on September 30.
External Factors Affecting Bitcoin’s ATH
Recent reports highlighted that demand for stablecoins in China has been bearish, which could further delay a new all-time high for Bitcoin. When dollar-pegged stablecoins trade at a discount in China, it usually indicates a bearish sentiment in the market.
Current Bitcoin Market Status
As of now, Bitcoin is trading at $64,406, which is about 12.6% lower than its all-time high of $73,734 in March. The asset has also seen a sharp retreat during early trading on September 30, dropping nearly 2% in just six hours.
Conclusion
In summary, while the current social sentiment around Bitcoin is overwhelmingly bullish, historical patterns suggest that this could hinder the cryptocurrency from achieving a new all-time high in the immediate future. Investors should remain cautious and manage their expectations accordingly.
