Bitcoin’s social media mood has changed back to one of optimism, after the cryptocurrency recovered above $70,000 on February 2, a result of US President Donald Trump making recent remarks that the Iran War could be coming to an end.
Market intelligence platform Santiment posted a post Tuesday on its X social media page. shared Data shows that the positive discussions on social media have steadily increased after Monday’s crash.
“Across X, Reddit, Telegram, and other crypto-related discussions, the crowd is encouraged by Trump’s comments that the war may soon end, and oil prices reversing course,” Santiment said.
This was posted in another post that “periods of uncertainty often trigger a search for alternative assets, and crypto markets tend to react quickly because they trade globally around the clock and are not tied to any single government or financial system.”
Last month, tensions escalated in the Middle East after US military and Israel launched strikes against Iran. Iran then retaliated by attacking several countries in its neighborhood.
The comments made by Donald Trump on Monday are still controversial. signaled the war Could be ending soon: “I think the war is very complete, pretty much,” Though he said later in a Truth Social posting that the US would increase its military pressure against Iran if it did anything to reduce the oil supply.
Bitcoin holds firm against geopolitical shocks
Ryan McMillin is the chief investment officer at Australian crypto manager Merkle Tree Capital. He told Cointelegraph several factors could also be causing a positive mood among traders.
Bitcoin’s (BTCCompanies like Strategy have shown a strong resistance to geopolitical events and a positive institutional momentum. bought nearly 18,000 Bitcoin last week It is a second purchase this weekMcMillin believes that Bitcoin remaining above its lows in February could have also contributed.
“Bitcoin has shown real strength through tough conditions, with inflation cooling, oil risk aside, adding tailwinds so too a new Fed chair only months away and the Clarity Act inching closer to implementation.”
“Shorts are vulnerable; liquidity on the short side could get squeezed toward $80,000 before a true higher/lower decision point. Bears ruled for months, now they could face their first test of this cycle,” McMillin Added.
Rachael Lusc, an analyst with crypto exchange BTC Markets told Cointelegraph the Bitcoin’s return to $70,000 mark was a catalyst as well, since it is a “meaningful resistance point, and reclaiming it publicly, on social media feeds and price alerts, reignites the fear of missing a move.”
During the same period, there was a possible resolution of the Iran conflict. The oil price dropped sharply. And progress had been made on stablecoin regulation Lucas says that these changes are also lifting a broader ecosystem, and reversing macro-headwinds which have suppressed sentiment.
“When multiple positive catalysts land at once, social sentiment responds quickly and FOMO accelerates fast.”
FOMO can be an overall good sign
Despite social media discussions about Bitcoin trending positively, the Crypto Fear & Greed Index, which measures Overall crypto sentiment remained at 15 indicating that it is still in “extreme fear.”
The Crypto Fear & Greed uses several sources for its ratings: Bitcoin volatility, dominance, market momentum, social media and Google Trends data.
Meanwhile, Google Trends data for “Bitcoin” returned A score of 71 on Wednesday is down from a peak of 100 in March.
“FOMO frequently becomes self-fulfilling in crypto. Sentiment flips from fear to greed attracts fresh buyers, boosts volumes, and drives short-term upside, as we’ve seen in past cycles,” McMillin stated.
Related: Bitcoiners celebrate as the network produces its 20 millionth coin
“An oversold technical setup after five months of declines, five straight months down from the $126,000 all-time high in October has left Bitcoin heavily oversold, priming it for a relief rally at very least,” He added.
Lucas added that along with the positive sentiments, there are also some encouraging signs in on-chain data, such as funding rates that have reset positively and institutional flows through exchange-traded funds consistent.
“That’s a different foundation to previous FOMO cycles that were driven largely by retail leverage,” She added.
“That said, this market can flip quickly. Geopolitical risk hasn’t disappeared, and any escalation that reverses the oil retreat could shift sentiment from FOMO to FUD just as fast.”
Magazine: The debate over Bitcoin’s four-year cycle is over: Benjamin Cowen
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Source: cointelegraph.com
