Bitcoin’s social sentiment has reached its lowest level of 2024, indicating a surge of negative emotions among retail investors as the cryptocurrency’s price drops to $97,150—a decrease of over 10% from its peak of $108,300 on December 17.
In contrast to a previous decline in Bitcoin sentiment mentioned in a recent CNF post, where BlackRock’s BTC ETF experienced record inflows, the current sentiment suggests a different dynamic.
Despite the dip, market intelligence platform Santiment suggests that this Fear, Uncertainty, and Doubt (FUD) could present a contrarian opportunity, as markets often rebound against retail investors’ expectations. Santiment shared the following in a tweet:
“The recent decline in the cryptocurrency market has caused Bitcoin’s crowd sentiment to reach its most negative point of the year. Vocal traders are now expressing significant FUD, and this is good news for contrarian investors who understand that markets often move in the opposite direction of retail investors’ expectations.”
Crypto analysts are pointing to historical fractals as potential indicators of a potential upward trajectory for Bitcoin before the end of the year. For instance, Elja Boom has noted emerging patterns on Bitcoin’s daily chart, suggesting a potential recovery above $100,000.
However, historical data from analyst Rekt Capital suggests that the correction could persist for another week, similar to market cycles observed in 2017 and 2021, where similar corrections lasted for several weeks.
There is an optimistic outlook for Bitcoin in 2025, supported by macroeconomic factors. As previously reported in a CNF update, experts predict that Bitcoin’s price will rise to $160,000 by the end of 2025, driven by improving global economic conditions and more accommodating monetary policies.
At the time of writing, Bitcoin (BTC) is trading at $95,507.14, reflecting a 0.77% decline in the past day and an 8.97% drop in the past week. Despite its current correction, Bitcoin’s long-term trajectory remains positive, with significant milestones expected in the future. [mcrypto id=”19649″]
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