Bitcoin's Social Media Sentiment May Be Its Own Worst Enemy

The price of Bitcoin has been on a steady rise, with many predicting it will reach $90,000 in the near future. This optimism is largely driven by social media platforms, where thousands of posts have called for a price above $90,000.

Analytics firm Santiment analyzed these social media posts and found that mentions of the $50,000-$59,000 range are being dismissed as fear, uncertainty, or doubt (FUD). The crowd's expectation is for the slow recovery from the February low to extend into May.

Flows into exchange-traded funds (ETFs) have increased, and Bitcoin has held up through various market stressors, including Iran-related conflict and DeFi hacks. However, Santiment warns that overly bullish sentiment can be a contrarian indicator for potential bearish performance.