Cryptocurrency Traders Maintain Optimism on Social Media: Could this be Negative for bitcoin‘s Price?
Bullish Terms Related To Crypto Are Still Circulating On Social Media
Recent data from the on-chain analytics firm, Santiment, shows that social media users are still bullish about cryptocurrencies. The firm uses a metric called “social volume” to track the total number of unique social media posts that mention specific terms related to crypto. This data provides insight into the social media behavior across major platforms.
The high social volume indicates a large number of users discussing the term, reflecting an overall positive sentiment in the market. When applied to cryptocurrency, this data reveals that users are showing optimism about bitcoin and the wider sector. Santiment gathered the data from social media posts discussing bitcoin and cryptocurrency and calculated the social volume for sentiment-related terms.
The graph reveals that the social volume of bearish-related terms has been lower than bullish ones, indicating a prevailing optimistic sentiment among social media users. However, historically, such market conditions have not been ideal for price rises, often leading to sideways movement or declines in assets.
Recently, bitcoin experienced a pullback to around $36,200, indicating a decline in value. The chart below illustrates this price movement.
As social media users remain hyped about the sector, a move up for BTC and others is unlikely. It remains to be seen whether the sentiment will calm down in the coming days, potentially allowing for a further rally, or if the sector will experience FOMO-induced pain.
Overall, the prevailing bullish sentiment on social media may have a negative impact on bitcoin‘s price. It is essential to monitor the sentiment and be cautious of potential market movements.
### News source: bitcoinist.com