Why Is The Current Sentiment Around Bitcoin So Negative?

Bitcoin, often seen as the barometer of the crypto market’s health, is facing a rare storm of pessimism. Despite its price hovering around $64,000, the crypto community seems gripped by persistent fear, uncertainty, and FUD.

An Unusual Level of FUD Envelops Bitcoin

Bitcoin is currently at the center of a storm of negative sentiment on platform X (formerly Twitter), a situation described as rare by industry experts. According to data from crypto intelligence platform Santiment, the queen of cryptos is experiencing a prolonged level of FUD (Fear, Uncertainty, Doubt), which is unusual for this asset.

🫣 The crowd is mainly fearful or disinterested toward Bitcoin as prices range between $65K to $66K. This extended level of FUD is rare, as traders continue to capitulate. BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient. pic.twitter.com/WMy3lbdjEB

— Santiment (@santimentfeed) June 20, 2024

“This prolonged level of FUD is rare, as traders continue to capitulate,” said Santiment in a June 20 post. “Investors are primarily fearful or disinterested in Bitcoin as prices oscillate between $65,000 and $66,000,” added the platform.

Prolonged Stagnation

The numbers confirm this dismal trend. Bitcoin’s price has varied between $63,000 and $67,000 over the past week, according to CoinMarketCap data. Additionally, Santiment’s weighted sentiment index, which measures Bitcoin mentions on X and compares the ratio of positive to negative comments, has remained negative since May 23.

Past positive events, such as the approval of 11 Bitcoin exchange-traded funds in January and the April halving, had temporarily pushed the index to positive levels, reaching scores of 4.49 and 2.35 respectively. However, these positive sentiment peaks now seem distant as the crypto market goes through a phase of doubt and disinterest.

Moreover, the Fear and Greed Index, another key market sentiment indicator, currently shows a reading of Greed at 63, down 11 points over the past seven days. Despite this sentiment of stagnation, some analysts remain optimistic, believing that this consolidation could precede a dramatic rise.