Bitcoin’s social sentiment has dropped to its lowest level of 2024, indicating a wave of negative retail emotions as the cryptocurrency trades at $97,150—down over 10% from its December 17 peak of $108,300.
Unlike a previous Bitcoin sentiment slump discussed in a recent CNF post, where BlackRock’s BTC ETF saw record inflows, current sentiment suggests a different dynamic.
Despite the dip, market intelligence platform Santiment suggests this Fear, Uncertainty, and Doubt (FUD) could indicate a contrarian opportunity, as markets often rebound against retail expectations. Santiment shared in a tweet:
Crypto’s further flush has sent Bitcoin’s crowd sentiment down to its most negative statistical point of the year. Vocal traders are now showing severe FUD, and that’s good news for contrarians who know markets move the opposite direction of retail’s expectations.
Crypto analysts point to historical fractals as potential signs of an upward trajectory for Bitcoin before year-end. For example, Elja Boom notes emerging patterns on Bitcoin’s daily chart, hinting at a recovery above $100,000.
However, historical data from analyst Rekt Capital suggests the correction could persist for another week, mirroring market cycles from 2017 and 2021, where similar corrections lasted multiple weeks.
Optimistic 2025 Outlook with Macro Support
As anticipated in a recent CNF update, Bitcoin’s price prospects beyond 2024 remain bullish. Experts predict a rise to $160,000 by the end of 2025, fueled by improving global economic conditions and more lenient 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. While navigating its current correction, Bitcoin’s long-term trajectory remains optimistic, with significant milestones ahead.