- Social media sentiment influences Bitcoin’s price, with fear leading to upward movement.
- Bitcoin wallet inflows suggest growing investor confidence and strong demand.
- Active wallets increasingly signal bullish market sentiment as Bitcoin nears $100K.
Beware the hype on social media. New data from Santiment reveals a concerning correlation between Bitcoin’s price and the emotions of retail traders.
This correlation is evident in the $90K-$99K, $100K-$109K, and $110K-$119K price ranges. When Bitcoin’s price was between $90,000 and $100,000, mentions of Bitcoin increased around the $100K-$109K range.
This period coincided with heightened “Crowd Fear,” a sentiment driven by retail sellers looking to exit their positions. History shows that such fear-driven selling often increases Bitcoin’s price as buy orders outpace sell-offs.
Additionally, as of the time of “Crowd Greed,” when social media is filled with positive predictions and mass faith in the $100K-$119K range, Bitcoin’s price tends to decline.
Wallet Activity and Bitcoin’s Price
Bitcoin’s price movements have been tied to changes in wallet inflows and outflows, reflecting broader market trends. From February to November 2024, Bitcoin experienced inflow spikes around July, aligning with a price increase.
Despite these fluctuations, the overall trend points to strong demand, as inflows consistently outpace outflows. As Bitcoin approaches the $100K mark, these changes signal a continued positive outlook among investors.
Read also: Bitcoin Price Rises, but Wallet Activity Hits a Low Point
Active Wallets and Investor Confidence
Along with social media sentiment, on-chain data offers perspectives on Bitcoin’s price movements. Between February and November 2024, the count of active Bitcoin addresses rose, reaching its highest point in November 2024.
As Bitcoin’s price rose toward $100,000, wallet inflows surged, showing growing investor interest. These inflows and rising prices suggest a bullish market sentiment.
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