Data shows that sentiment around Bitcoin among social media users has turned negative following the cryptocurrency’s recent price drop.

Positive/negative sentiment about Bitcoin has declined recently

In the novel one post on X, analyst firm Santiment discussed the latest trend in positive/negative sentiment towards Bitcoin. This metric tells us whether the majority of social media comments about a given asset are positive or negative.

The indicator works by placing posts/messages/threads containing cryptocurrency mentions on major social media platforms using a machine learning model to separate bullish and bearish comments. It then counts the number of posts belonging to each category and determines the net standing based on their proportion.

Here is a chart shared by Santiment that shows the positive/negative sentiment trend in Bitcoin over the last month:

As shown in the chart above, positive/negative sentiment towards Bitcoin shot into the “FOMO” zone earlier as the cryptocurrency’s recovery surged. This is not unusual as positive price action usually creates optimism among traders.

The opposite trend was observed when the asset experienced its last pullback. Positive/Negative sentiment has now dropped to 0.94, suggesting that bearish comments are slightly dominating social media platforms. This is the lowest level of this indicator since April 21.

Historically, digital asset markets have often gone against the grain of the crowd, so a shift to bearish sentiment could actually turn out to be a positive sign for Bitcoin. “As small investors sell off their coins in response to this mild recession, the likelihood of a rebound increases while most people expect a further decline,” the analyst firm explained.

However, the chart shows that the positive/negative sentiment has not yet reached the “FUD” zone, where the bearish mentality becomes pronounced enough that a bounce becomes likely.

In other news, Bitcoin whales have seen an augment in their wallet numbers over the past year, as highlighted by Santiment in another X post.

From the chart, we can see that there are currently 20,229 wallets holding at least 100 BTC (worth approximately $7.64 million). Compared to the previous year, this number represents an augment of 11.2%. The analytics firm noted:

This is a significant long-term trend as portfolios of at least this size (currently ~$7.7M or more) are often associated with whales, mainstream investors, institutions and large-cap long-term holders.

BTC price

Bitcoin fell to $76,400 after falling more than 5% over the past week.