128 Interactions, 2 today
Another week, another persistent range-bound movement, and apparently harder highs and lows for Bitcoin, has had a significant influence on the king coin’s social statistics. While there is no disputing that numerous positive indicators such as increased nett growth users, whale holding, and trader accumulation point to a healthy long-term trajectory for BTC, the coin’s recent price movement has been somewhat erratic.
To start with, a recent Santiment report highlighted that the amount of daily Bitcoin mentions on crypto social media has plummeted greatly, with its 7-day moving average sinking to a half-year low as of July 11. Bitcoin’s social volumes had reached January 2021 levels, with no major increases in trading volumes in the previous week.
Furthermore, Bitcoin’s relative social dominance has been seen declining in comparison to other top-cap assets like as Ethereum, Litecoin, Cardano, and Polkadot. The figure below shows that retail indifference for the top currency has grown, with Bitcoin’s social dominance (in orange) falling from 80.5 percent to 60.5 percent in the previous 30 days.
Looking at the big picture, it appears like Bitcoin is losing traction quicker than predicted. While the current buzz may appear to be overwhelmingly negative, is it really so awful for Bitcoin? In a nutshell, no.
Predominantly bearish market sentiment has been an old friend to cryptocurrencies. In fact, a report has previously underlined that extremely high social volume and bullish sentiment seem to coincide with looming price tops and short-term corrections, as the market becomes overconfident and too greedy for its own good.That is not the case with Bitcoin right now; on the contrary, sustained low levels of crowd chatter and a negative bias may work in favour of the king coin, suggesting undervalued circumstances and the potential for a short-term recovery.
Even if past performance is not necessarily predictive of future results, it is worth noting that Bitcoin’s price recoveries in the last two years have corresponded with a negative attitude. Keeping a watch on Bitcoin’s social activity in the near future may assist better comprehend where the top coin’s market sentiment will weigh.
The prevailing negative tone for the top currency is not shared by Bitcoin futures dealers. Bitcoin’s financing rate remained stable at 0.01 percent on BitMEX and Binance (and 0.0076 percent on Huobi), indicating more uncertainty in the futures market than a widespread pessimistic consensus. Active addresses, which suffered a significant drop at the start of this month, have steadily recovered and stood at 853k at press time.
Having said that, Bitcoin’s NVT ratio with transaction volumes surpassed early May levels, indicating stronger adoption and increased network value for the currency, which might be a favourable indication for it in the near run. Furthermore, whale transactions peaked on July 10, indicating some robust activity in the area.