Sentiment on social networks regarding BTC remains negative.
According to the analytical company Santiment, which points out that both the volume of mentions of Bitcoin on social networks and the volume of those who claim to have bought during the decline (the famous “buy the dip”) is declining.
However, Santiment also emphasizes that this situation could in fact indicate a possible upward positive reversal of the trend, as similar dynamics often occur.
BTC sentiment on social networks
The graph tweeted by Santiment shows how the volume of mentions of BTC on social networks has varied considerably over the past year. In fact, it seems even more variable than the price of BTC. The last peak coincided with a fall in prices on 8 June, while, for example, during an even sharper fall on 22 June, the volume of mentions remained in line with last year’s average.
Interestingly, the highest peak occurred after a decline on May 12, when the price dropped from $ 57,000 to less than $ 50,000, while a few days later, on May 19, when it dropped to $ 30,000, the metric returned to average, only to fell to lows a few days later.
The comparison between the peaks in the volume of mentions on social networks and the main price fluctuations does not seem to reveal any obvious direct link, which is in fact quite surprising given that the greatest interest is usually generated by the largest and fastest price fluctuations.
Even between September and November last year, when the price fluctuated very little according to BTC volatility standards, there were still a number of highs and lows, with only two very short moments of calm during the holiday periods in late August and late December.
However, if we look only at the low points of recent months, they have often been followed by a rise in the price of BTC.
The volume of mentions of Bitcoins on social networks is largely generated by small investors, while the price is also affected by the activities of large investors, and it is possible that when retail interest falls, institutional interest increases when prices are affordable.