- That hasn’t happened since the covid panic of 2020
- But experts urge not to give in to fears
The Santiment crypto sentiment tool shows extreme lows. The last time there was such a picture was in 2020 during the pandemic and market decline.
How the Santiment indicator works
The tool is based on two indicators. The first is a “sentiment score,” which analyzes posts on social networks using a special algorithm. This tests whether users’ attitudes toward BTC are now negative or positive.
A second indicator is “social volume,” which measures the total number of discussions of the asset involving investors in social networks.
The graph presented by Santiment shows that crypto-investor sentiment has shifted in a sharply negative direction. This suggests that there are many discussions related to BTC on social networks, and the content of such posts is sharply negative.
The return of “fear” to the market is related to the actions of the SEC in the U.S.. They filed lawsuits against Binance and Coinbase, two giants of the cryptoworld. As a result, the value of BTC fell from over $27,000 to a multi-month low below $25,000.
Worth remembering that despite fears, Bitcoin is still beyond the SEC’s reach. That’s why experts such as Michael Saylor, president of MicroStrategy, believe that BTC will be a surprise winner in this situation.