Bitcoin Sentiment Hits Yearly Low Across Major Social Platforms, Setting Stage for Potential Price Rebound

After the recent slump in price across most crypto assets including Bitcoin, the largest asset by market cap has recovered 2% in the past 24 hours. According to data from CoinMarketCap, one BTC now trades hands for US$57,651 (AU$85,577) at the time of writing.

Related: Final Approval of Spot Ethereum ETF Expected to Enable Trading Next Week, Following Multiple Amended S-1 Filings

This comes as Mt. Gox moves close to 48,000 Bitcoin ahead of the likely priced in US$9 billion (AU$13.3 billion) payout and further selling by the German government.

Social Sentiment Most Bearish in Past 12 Months

Meanwhile, an analysis by market intelligence platform Santiment shows that social media signals are the most bearish they have been in the past year. They base this on data from Reddit, Telegram, 4Chan, and BitcoinTalk – showing a mostly negative view about where BTC is headed in the short term.

But, Santiment says this is also likely a turning point – as a strong signal like this could well indicate that we are entering a pivotal moment when a recovery is near.

When the crowd shows FUD at this level, the chances of a rebound to catch the majority off guard is at its peak.

Santiment

Report: BTC, ETH Crush Gold, US Equities

While the current situation may suggest a reversal, it’s important to note that the overall trend for the crypto sector this year remains positive.

In a report, K33 Research highlighted that Bitcoin and Ethereum have largely outperformed gold and US equities.

In the past twelve months BTC gained 48% and ETH 50% while gold ‘only’ managed a 13% increase. Still, the NASDAQ managed a 17% increase and the S&P 500 appreciated by 15%, lifting US equity traders above gold bugs.

Memecoin Mania Thrives, Sees New Entrants Skyrocket

While BTC and ETH obviously have dominated the narrative with Spot exchange-traded fund listings in the US and elsewhere, one sector stands out. Like it or not, but memecoins have been a driving factor this bull run.

Yes, they have zero underlying value as the founders of these tokens remind us every now and then, but they are part of the meme culture and seem to have cemented their place in cryptoland.

Related: Republican Platform Promises to Halt ‘Un-American’ Crypto Crackdown, Opposes Government Digital Currency

2024 saw several new memecoins – even Donald Trump and Joe Biden got their own token – but it wasn’t Doge or Shiba Inu that made the most gains. New entrants like dogwifhat (WIF) and Pepe had the strongest price movements, with 1074% and 633% in gains respectively.