Data shows that the positive sentiment around Bitcoin has spiked on social media after BTC’s return above $58,000, implying investors may feel FOMO.
Bitcoin Positive Vs. Negative Sentiment Ratio Has Spiked Recently
According to data from the analytics firm , the crowd has recently shown a sudden burst of optimism around Bitcoin. The indicator of relevance here is the “Positive Sentiment vs. Negative Sentiment Ratio,” which, as its name suggests, keeps track of the ratio between the positive and negative comments on social media related to a given coin.
The analytics firm sources posts/threads/messages from platforms like Twitter, Reddit, Telegram, and 4Chan. To determine whether these posts are negative or positive, Santiment puts them through a machine-learning model.
When the indicator has a value greater than 1, the comments related to positive sentiment outweigh the negative ones. On the other hand, being under the threshold suggests that most social media users share a negative sentiment.
Now, here is a chart that shows the trend in the Positive Sentiment vs. Negative Sentiment Ratio for the top two coins in the sector, Bitcoin and Ethereum, over the past few months:
Looks like the value of the metric has spiked much higher for BTC in recent days | Source:
As displayed in the above graph, a huge spike in positive sentiment vs. negative sentiment was observed for Bitcoin after the latest cryptocurrency recovery.
The peak of this spike has corresponded to twice as many positive posts as negative ones cropping up on the major social media platforms. This is the first time the indicator has reached such a high level.
While this indicates that the investors feel bullish about the asset, the optimism scale could be concerning. This is because BTC has historically tended to go against the expectations of the majority, with the probability of a contrary move rising, the more sure the crowd has become of a direction.
Since the positive sentiment has exploded after only a mild jump in the price, FOMO may be taking over the market a bit too soon. This could lead to a potential top for Bitcoin. As for when BTC’s fates might turn bullish again, the analytics firm says:
Look for traders to “slow their roll” and start to express FUD again. When the crowd begins conveying doubt again, BTC will truly begin testing its March all-time high market values.
Interestingly, whereas FOMO around Bitcoin is taking over social media, the users are still only showing a modest amount of optimism towards Ethereum. This could naturally play into the favor of ETH’s price.
BTC Price
Bitcoin has been encountering trouble pulling off a sustained move above $58,000, with the coin seeing another rejection today to $57,800.
The price of the coin seems to have been going up over the last few days | Source:
Featured image from Dall-E, Santiment.net, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Read more
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
Close
Disclaimer: The information found on NewsBTC is for educational purposes
only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any
investments and naturally investing carries risks. You are advised to conduct your own
research before making any investment decisions. Use information provided on this website
entirely at your own risk.
