Bitcoin Sentiment Is Falling, But It’s a Good Sign for BTC Prices
- Social media sentiment towards Bitcoin has dropped significantly in recent days.
- BTC ETF inflows surge despite negative sentiment.
The recent drop in Bitcoin (BTC) prices has impacted several cryptocurrencies as a whole as the overall market outlook has turned negative.
Sentiment turns bearish
Bitcoin sentiment on social media platforms like X (formerly Twitter), Reddit, Telegram, 4Chan and BitcoinTalk fell to its most negative point in a year this week, according to Santiment.
Traders have expressed extreme fear, uncertainty and doubt (FUD) at unprecedented levels. This negativity may actually indicate a buying opportunity.
Historically, when a crowd becomes this pessimistic, it can create the opportunity for a strong rally that takes most people by surprise.
So while FUD can be deafening, it can also be a sign that a price change is coming.
Source: X
Tickets are going up
On July 8, Bitcoin spot ETFs recorded their highest daily net flows in more than three weeks. Total flows reached $295 million, indicating strong investor appetite for Bitcoin despite the recent price drop.
This positive sentiment comes even as the German government sold a record amount of BTC yesterday, worth $915.3 million.
Breaking down the ETF inflows, Grayscale’s GBTC attracted $25.08 million, while BlackRock’s IBIT saw significantly more inflows at $187 million. Fidelity’s FBTC also saw significant inflows of $61.54 million.
These figures indicate that investors are increasingly turning to ETFs as a convenient and regulated way to gain exposure to Bitcoin.
The net inflow of $295 million represents new capital entering the Bitcoin market through ETFs. This increased demand could drive the price of BTC higher, especially if it continues over time.
This also indicates that despite the decline in sentiment on social media, institutions and paper investors are optimistic about the future of BTC.
Source: SoSoValue
How are the starters doing?
At the time of publication, the BTC price was trading at $57,404.26. Over the past 24 hours, the BTC price has increased by 3.87%. Additionally, the MVRV ratio of BTC has dropped significantly in recent days despite the recent price increase.
Read Bitcoin (BTC) Price Prediction 2024-2025.
This indicated that the profitability of addresses had declined and most addresses would not have made a profit if they had sold their assets.
While this may negatively impact sentiment, it also creates less incentive for BTC addresses to sell their holdings, resulting in less selling pressure on the network.
Source: Sentiment
This is an automatic translation of our English version.