Key Points
- Bitcoin sentiment on social media platforms has significantly declined, reaching its most bearish point in a year.
- Despite the negative sentiment, Bitcoin ETF inflows surged, indicating a strong investor appetite.
Despite the recent decline in Bitcoin’s price affecting the overall market outlook, the sentiment for Bitcoin on social media platforms such as X (formerly Twitter), Reddit, Telegram, 4Chan, and BitcoinTalk has reached its most bearish point in a year, according to data from Santiment.
Extreme Fear and Uncertainty
Traders are expressing extreme fear, uncertainty, and doubt (FUD) at an unprecedented level. However, this negativity could potentially signal a buying opportunity. Historically, when the crowd becomes extremely bearish, it often leads to a sharp rebound that catches the majority off guard. Hence, the current FUD could also indicate a possible price swing.
Despite the negative sentiment, Bitcoin spot ETFs experienced their highest daily net inflow in over three weeks on July 8th. The total inflow reached $295 million, suggesting a strong investor appetite for Bitcoin despite the recent price slump.
ETF Inflows Increase
The German government sold a record-breaking amount of Bitcoins, amounting to $915.3 million. Despite this, Grayscale’s GBTC attracted $25.08 million, while BlackRock’s IBIT saw a significantly larger inflow of $187 million. Fidelity’s FBTC also recorded a healthy inflow of $61.54 million. This indicates that investors are increasingly turning to spot ETFs as a convenient and regulated way to gain exposure to Bitcoin.
The $295 million net inflow represents new capital entering the Bitcoin market through ETFs. This increased demand could push the price of Bitcoin upwards, especially if it’s sustained over time. It also shows that despite declining sentiment across social media, institutions and fiat investors remain bullish about Bitcoin’s future.
Bitcoin Holders’ Status
At the time of writing, Bitcoin was trading at $57,404.26. In the last 24 hours, the price of Bitcoin grew by 3.87%. The MVRV ratio for Bitcoin fell significantly in the last few days despite the recent surge in price. This suggests that the profitability of the addresses had declined, and most addresses would not profit if they sold their holdings. This can impact sentiment negatively, but it also gives less of an incentive for Bitcoin addresses to sell their holdings, reducing selling pressure on the network.
