Santiment: Social Sentiment Stays Bearish on Bitcoin Despite Recent Bounce

Social sentiment around Bitcoin remains firmly bearish even after the recent price recovery, analytics firm Santiment reports — a sign retail traders on social platforms may still be wary despite the market rebound. How the metric works Santiment’s Positive/Negative Sentiment indicator gauges whether social media chatter about an asset leans bullish or bearish. A machine‑learning model classifies posts mentioning Bitcoin as positive or negative, then the metric is simply the ratio of positive to negative posts. Readings above 1 indicate more bullish messages than bearish ones; readings below 1 signal dominant negativity. What the data shows Santiment’s chart of Bitcoin’s sentiment over the past few months shows a clear cycle: - In January, as BTC rallied, positive sentiment spiked — social media users grew optimistic and, by Santiment’s wording, “greedy.” - That optimism coincided with a local market top and was followed by a pullback that pushed Bitcoin down toward the $60,000 level. - As prices fell, sentiment flipped sharply negative and has stayed depressed even as BTC recovered into the high $60,000s. Santiment notes that historically “while FUD is high, price rebounds have a heightened probability,” highlighting the recurring contrarian pattern in crypto markets where prices often move against the prevailing crowd expectation. Why it matters Persistent social-media fear despite price gains suggests retail participants may be slow to re-enter or remain cautious — a dynamic that can influence short-term volatility. For traders and analysts, tracking sentiment alongside price action offers an extra lens: extreme greed can foreshadow tops, while extreme fear can precede rebounds. Other market cues to watch Santiment’s analysis comes amid other market developments: Capriole Investments founder Charles Edwards flagged on X that the combined market cap of USDT and USDC has been dipping. Historically, Edwards notes, stablecoin market caps tend to decline only in bear markets — so a continued fall in these reserves could indicate capital leaving the sector. Where price stands now Bitcoin briefly climbed above $70,000 earlier in the recovery but has since retraced and is trading around $67,700 at the time of writing. Bottom line Social sentiment remains skewed toward fear even after BTC’s bounce, making the current environment a potentially fertile one for volatile moves. Keep an eye on sentiment readings, stablecoin flows, and price behavior around key levels ($60k–$70k) to gauge where the market might head next. Read more AI-generated news on: undefined/news