Santiment experts spoke about the impact of activity on social networks on the price of BTC
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Johny Smith
2024/10/27
3 mins read
According to an analysis by researchers from Santiment, the “crowd’s” expectations regarding the future price of Bitcoin (BTC) influence the actual behavior of the price of the cryptocurrency on the market. The graph published by experts shows the dynamics of social mentions in the ranges of $50-59 thousand and $70-79 thousand, with sharp spikes in discussions noted precisely at key moments in the BTC price movement. This study highlights that sharp spikes in the frequency of opinions and predictions on social media at high price levels very often coincide with a slowdown in BTC price growth or even a correction.
According to the data, on September 27, the Bitcoin rate reached $67,000, causing a wave of optimism among investors. Social media was flooded with messages about the possibility of reaching $70,000 or more. However, there was no further increase, and the price of BTC remained in a range limited by selling pressure. At the beginning of October (1st-3rd), quotes for the digital coin dropped to $60,000, which provoked large-scale bearish sentiment and active forecasts of a drop to $50,000. This period was also accompanied by a sharp increase in mentions on the X platform.
Then on October 10, the Bitcoin price briefly fell below $60,000 again, which once again provoked fear among investors and bearish forecasts. However, this drop turned out to be temporary. Soon the price returned above this level, refuting fears, and the subsequent increase only fueled expectations of a return to $70,000. As can be seen from the data, mass panic and fear only strengthened the local bottom, as the price began to move in the opposite direction.
Finally, yesterday, October 15th, BTC price again reached $67,000. Once again, expectations of $70,000 began to dominate social networks. Moments of optimism like these tend to indicate short-term overbought conditions. Santiment staff warn that the crowd is often wrong in its forecasts: when the majority expects growth, the asset often moves in the opposite direction. This phenomenon is called crowd think.
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