Why is the current sentiment around Bitcoin so negative?

Bitcoin, often seen as the barometer of the health of the crypto market, is facing a rarely seen storm of pessimism. Despite its price hovering around $64,000, the crypto community seems gripped by persistent fear, uncertainty, and FUD.

Unusual Level of FUD Envelops Bitcoin

Bitcoin is currently at the center of a storm of negative sentiment on the X platform (formerly Twitter), a situation described as rare by industry experts. According to data from crypto intelligence platform Santiment, the queen of cryptos is experiencing a prolonged level of FUD (Fear, Uncertainty, Doubt), which is unusual for this asset.

“ This prolonged level of FUD is rare as traders continue to capitulate,” Santiment said in a June 20 post. “ Investors are mostly fearful or disinterested in Bitcoin as prices hover between $65,000 and $66,000,” added the platform.

Prolonged stagnation

The figures confirm this gloomy trend. The price of Bitcoin has ranged between $63,000 and $67,000 over the past week, according to data from CoinMarketCap. Additionally, Santiment's Weighted Sentiment Index, which measures mentions of Bitcoin over X and compares the ratio of positive to negative comments, has remained negative since May 23.

Past positive events, such as the approval of 11 Bitcoin exchange-traded funds in January and the April halving, had temporarily pushed the index to positive levels, reaching scores of 4.49 and 2.35 respectively. . However, these peaks of positive sentiment now seem distant as the crypto market goes through a phase of doubt and disinterest.

Separately, the Fear and Greed Index, another key indicator of market sentiment, currently shows a Greed reading of 63, down 11 points over the past seven days. Despite this feeling of stagnation, some analysts remain optimistic, believing that this consolidation could precede a spectacular rise.