Data shows that social media sentiment toward Bitcoin remains deeply bearish, despite the cryptocurrency’s recent price recovery. In a new post on X, analytics firm Santiment discussed how Bitcoin’s Positive/Negative Sentiment has evolved following its latest price surge.
The Positive/Negative Sentiment indicator compares positive and negative discussions about an asset across major social media platforms. It uses a machine-learning model to analyze posts mentioning the asset, categorizing them as positive or negative, and then calculates the ratio between the two. A value above 1 indicates more bullish messages, while a value below 1 signals dominant negative sentiment.
Santiment’s chart reveals that Bitcoin’s Positive/Negative Sentiment rose significantly during January’s rally, reflecting growing greed among retail traders on social media. This period of greed was followed by a market top and a subsequent downturn. As Bitcoin’s price fell back toward $60,000, the sentiment plummeted, indicating widespread fear across social platforms.
However, just as extreme greed preceded a top, this bearish sentiment set the stage for a rebound—a pattern often seen in digital asset markets, where prices tend to move against the crowd’s expectations. Interestingly, even though Bitcoin has since recovered to the high $60,000 range, the Positive/Negative Sentiment remains low.
“Historically, while FUD is high, price rebounds have a heightened probability,” Santiment noted. It remains to be seen how Bitcoin will perform in the near future given the prevailing bearish sentiment.
In other news, Capriole Investments founder Charles Edwards highlighted in an X post that the stablecoin market cap has recently declined. Edwards pointed out that historically, the stablecoin market cap has only fallen during bear markets. If the combined market cap of USDT and USDC continues its recent trajectory, it may suggest capital is exiting this part of the sector.
Bitcoin’s price briefly recovered above $70,000 earlier but has since pulled back and is now trading around $67,700.
Frequently Asked Questions
FAQs Bitcoins Bearish Social Sentiment vs Price Rebound
Beginner Questions
Q What does social sentiment mean in Bitcoin
A Its the overall mood or opinion people express about Bitcoin on social media forums and news Bearish means most people are pessimistic or expecting the price to drop
Q Why is social sentiment still bearish if the price went back up from 60000
A Sentiment often lags behind price People might still be worried about recent losses uncertain about future risks or reacting to negative news even as the price recovers
Q Is social sentiment a reliable way to predict Bitcoins price
A Not reliably Sentiment can be emotional and shortterm Its one factor among many and shouldnt be used alone for predictions
Q What are common signs of bearish sentiment
A Youll see more fear doubt or negative comments online predictions of further drops and discussions about selling or avoiding Bitcoin
Q Should I avoid buying Bitcoin when sentiment is bearish
A Not necessarily Some investors see bearish periods as buying opportunities at lower prices but always do your own research and consider your risk tolerance
Advanced Questions
Q How is social sentiment measured quantitatively
A Through sentiment analysis tools that scan social media using AI to score keywords as positive negative or neutral creating indices like the Crypto Fear Greed Index
Q Can a price rebound fail if sentiment stays bearish
A Yes If negative sentiment reflects deeper issues it can limit buying pressure and cause prices to fall again creating a dead cat bounce
Q What factors might keep sentiment bearish despite a price rebound
A Macroeconomic fears Bitcoin network issues negative regulatory news or large holders selling off
Q How do experienced traders use sentiment in their strategies
A They might treat extreme bearish sentiment as a contrarian buy signal if other indicators are strong or use it to gauge market psychology for timing entriesexits