Bitcoin’s social sentiment has dropped to its lowest level of 2024, indicating a surge of negative emotions among retail investors as the cryptocurrency is trading at $97,150, which is over 10% lower than its peak of $108,300 on December 17.
In contrast to a previous decline in Bitcoin sentiment discussed in a recent CNF post, where BlackRock’s BTC ETF experienced record inflows, the current sentiment suggests a different trend. Despite the downturn, the market intelligence platform Santiment suggests that this Fear, Uncertainty, and Doubt (FUD) could present a contrarian opportunity, as markets often rebound against retail expectations. Santiment shared the following message in a tweet:
“The recent downturn in the crypto market has led Bitcoin’s crowd sentiment to its most negative point this year. Vocal traders are expressing significant FUD, which could be positive news for contrarians who understand that markets tend to move opposite to retail expectations.”
Crypto analysts are pointing to historical fractals as potential indicators of a potential upward movement for Bitcoin before the end of the year. For instance, Elja Boom has identified emerging patterns on Bitcoin’s daily chart that suggest a recovery above $100,000. However, historical data from analyst Rekt Capital indicates that the correction could persist for another week, resembling market cycles from 2017 and 2021 where similar corrections lasted for several weeks.
Looking ahead to 2025, experts remain optimistic about Bitcoin’s price prospects. They predict a rise to $160,000 by the end of 2025, driven by improving global economic conditions and more accommodating monetary policies. Currently, 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 the ongoing correction, Bitcoin’s long-term trajectory remains positive, with significant milestones on the horizon.
