TL;DR
- Based on data collected from various social media platforms, Santiment suggests that references to a bearish market have been increasing.
- Following the fluctuations of the past week, Bitcoin has lost almost 11% of its value.
- Analysts expect a drop in BTC price after the halving. However, a rebound in the long term is expected, which historically occurs after each event.
The crypto market has been experiencing weeks of volatility, with constant fluctuations, sparking speculation among investors. However, some signals suggest that there could be a shift in trends on the horizon. According to Santiment, the renowned blockchain analysis platform, the current bearish sentiment could be nearing a reversal. Based on data collected from various social media platforms, Santiment has observed a decrease in mentions of a “bullish market” since late March, while references to a “bearish market” have been increasing.
This trend has coincided with a challenging period for Bitcoin. Factors such as low expectations for interest rate cuts by the Federal Reserve, geopolitical tensions, and tax payments in the United States have contributed to an 11% drop in the price of Bitcoin this week. However, it recently fell below $60,000, only to quickly recover. At the time of writing, its price is $62,700.
😧 According to the #crypto crowd, the #bullmarket has essentially come to an end after #Bitcoin's -16% market value drop since the #AllTimeHigh of $73.6K hit back on March 14th. At the same time, #bearmarket mentions are increasing. Historically, prices move the opposite… pic.twitter.com/1fnGePwMV0
— Santiment (@santimentfeed) April 17, 2024
All eyes are on the upcoming halving, scheduled to occur in the next few days. The reduction in the issuance of new coins per block to 3.125 BTC could have significant implications for the price and sentiment of the overall market.
Betting on the Long Term with Bitcoin
Some companies like Bitwise have emphasized that in the month following the halving, BTC usually experiences a slight price drop. Despite this, they pointed out a historical pattern of exponential gains in the year following each halving. In fact, after the events of 2012, 2016, and 2020, Bitcoin experienced exponential price increases, suggesting long-term bullish potential.
Crypto.com CEO Kris Marszalek has supported this optimistic long-term view, noting that while there may be short-term selling pressure due to the “buy the rumor, sell the news” phenomenon, the halving will have a significant positive impact on the market in the future. Marszalek also believes it is important to maintain a long-term perspective amid short-term volatility.
In the coming days, the market will face new (though familiar) challenges and fluctuations. According to many experts, it is important to focus on the future and bet on the long term. It is time to reassess investment strategies and prepare for what lies ahead.
