Latest knowledge revealed that the variety of constructive Bitcoin mentions on the favored social media platform Twitter has dropped considerably because the halving in May.
On the identical time, the concern and greed index has downgraded from its impartial stance in May to a extra fearful state in June.
Twitter BTC Positivity Drops
In line with the data from the monitoring firm Santiment, the variety of constructive Bitcoin mentions on Twitter reached its yearly excessive on May 12th – a day after the third halving. At that time, the quantity equaled 781.5.
Since then, nonetheless, this metric has been on a reasonably sharp decline and is now “creeping close to a year-low positive score at 327.”
Usually, sudden actions in detrimental and constructive mentions correspond with equally risky price developments. Such was the case in July final 12 months after BTC reached its 2019 peak at almost $14,000. Because the price began to crumble shortly after, the variety of constructive mentions adopted as effectively.
One other instance might be extracted from the mid-March 2020 panic sell-offs. When the first cryptocurrency plunged by 50% to beneath $4,000, the detrimental mentions skyrocketed to a yearly excessive of over 200.
Other than the constructive mentions declining now, the negatives are additionally comparatively low. This helps a earlier narrative from Google Traits, indicating that the entire curiosity within the largest digital asset by market cap has decreased reasonably considerably after the halving.
Why So Fearful?
The Worry and Greed index follows the final sentiments in a selected monetary market and offers a rating starting from zero to 100. It measures and aggregates numerous varieties of knowledge, reminiscent of social media presence, quantity, surveys, and volatility.
Throughout the identical yearly timeframe as the info above, the F&G Index for Bitcoin has carried out considerably equally. As an illustration, it was in “greed” territory in early July when the price was over $12,000. What adopted was weeks of concern because the asset was shedding value.
Essentially the most fearful state got here reasonably unsurprisingly in March this 12 months. Because the market was tumbling, the index was largely in “extreme fear” for a number of consecutive weeks. It lastly managed to interrupt out two months later when the group was making ready for the halving.
It has been fluctuating in a decent vary since then, however on the time of this writing is exhibiting concern at 41.
However, these developments and sentiments shouldn’t be perceived as a dependable price indicator. Bitcoin sometimes tends to go in the other way.
Throughout essentially the most pessimistic state in March, 70% of contributors in a ballot famous that BTC will proceed its downfall and can backside beneath $3,700. Nonetheless, as an alternative of plunging beneath that time once more, the first cryptocurrency recovered totally and is at present buying and selling at $9,100.
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