American poet and novelist Charles Bukowski said, “The masses are always wrong. Wisdom does everything the masses won't do.”
This also applies to cryptocurrencies, with the crypto crowd starting to turn bearish on Bitcoin (BTC), indicating that the current BTC price decline could soon run out of steam.
“Historically, prices move in the opposite direction to what mass traders expect,” blockchain analytics platform Santiment said in a post on Market Insights, adding that the market is moving in the run-up to the expected halving in the next two days. He added that there is a possibility that the market will bottom out shortly after that.
The number of mentions of a “bull market” or “bull cycle” on crypto social media has been declining since late March, according to data tracked by Santiment. At the same time, the number of references to a “bear market” or “bear cycle” steadily increased.
Santiment's Social Trends Indicator tracks chatter across Telegram, Reddit, X, and 4Chan to identify keywords and topics that spark interest.
“According to the crypto crowd, #Bitcoin’s market value has fallen -16% since hitting an #all-time high of $73,600 on March 14th, effectively ending the #bull market.” At the same time, references to #bearmarkets are increasing,” Santimento said. He said.
The number of mentions of other keywords, such as “buy on the edge,” also indicates that “hopium” (cryptocurrency slang for hopes for a rapid recovery and continued bullishness) is waning among retail investors. ” marked the end of the downtrend.
Lower odds of a Federal Reserve rate cut, rising geopolitical tensions, and US tax season weighed on Bitcoin this month, leading to a 14% price decline.
The top cryptocurrency by market value hit a low of less than $60,000 yesterday, but has recovered to trade near $61,200 at press time. The CoinDesk 20 index, which measures the performance of the top 20 digital assets by market capitalization, has fallen 24% this month.
The Bitcoin blockchain will implement its fourth mining reward halving on Friday or early Saturday morning, reducing BTC emissions per block by 50% to 3.125 BTC. Analysts, including JPMorgan, have warned that the price decline will become even more severe in the wake of the once-in-four-year event, although the long-term consensus remains bullish.
