Bitcoin’s overall sentiment is decidedly negative
Bitcoin’s overall sentiment is decidedly negative
Bitcoin

Bitcoin’s overall sentiment is decidedly negative

By Eliano Martellucci - 19 Sep 2022

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Indicators and Google searches indicate that general Bitcoin sentiment is very pessimistic. 

Bitcoin’s sentiment trend is still negative

As is shown by a tweet from Jameson Loop, a big Bitcoin supporter and co-founder of Casa, most Google suggestions redirect to negative searches:

The first is “Bitcoin is dead“. As of 18 June, this search term had reached an ATH of 100/100, according to Google Trends. 

Not surprisingly, it perfectly coincided with the end of the first major bearish phase, when BTC had retested $19,000 support for the first time since December 2020. 

In fact, there is an indicator on the 99bitcoins portal that reports the number of Bitcoin deaths over the time period in question. 

A “Bitcoin Obituary” is defined as any content that explicitly expresses the end of Bitcoin, describing it, for example, as useless or worthless

To date, Bitcoin has died 461 times. The last one was on 3 July 2022 and was recorded by the following tweet: 

The phrase that made this statement qualify as an obituary was:

“Bitcoin is an Unraveling Ponzi Scheme”.

It is no coincidence that this research is back in fashion, just now that the value of BTC has broken a new support, pushing below $18,500

This could be technical confirmation of a bearish pattern, which could drag Bitcoin toward $10,000, a level hailed by many analysts. 

Another important factor that adequately summarizes Bitcoin’s market sentiment is the well-known Fear & Greed Index

Currently, it stands at 21, which indicates Extreme Fear on the part of investors.

Fear and Greed
Level reported by the Fear & Greed index

This situation occurs precisely in persistent bearish phases, or following a series of negative events. 

The relationship between sentiment and asset price

Unfortunately, people’s views are closely influenced by asset prices. If these fall, then it results almost instantly in a loss of investor confidence.

In this case, however, in the same way that one assesses the future potential of a company, one should analyze the underlying technology and the capabilities of the ecosystem to meet a given need in the market. 

This will provide a more or less adequate estimate of the intrinsic value of the asset under consideration, lending some additional level of rationality to investment decisions. 

Most people do not do this and allow themselves to be guided by the strong emotions of the moment, such as the famous FOMO (Fear Of Missing Out), fear, greed, or simply uncontrolled general hype. 

This explains why almost all retail investors buy when the price is high, and sell when the price is low. 

Eliano Martellucci

Eliano has a bachelor's degree in Economics and Business Administration and is about to complete his master's studies in Finance at the University of Trento (UNITN). He got hooked on the crypto and blockchain world during the summer of 2017 and has not left it since then. He currently works as editor & SEO specialist at Cryptonomist, writes articles and invests, both in Blue Chip and early stage assets. Furthermore, he is working on his latest thesis project entitled: "A Study on crypto market Sentiment Analysis through Machine Learning algorithms in python."

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