Bitcoin
Bitcoin bullish sentiment in ‘serious decline’
Bitcoin’s positive sentiment has witnessed a “serious decline,” according to analysts at market intelligence platform Santiment.
On Thursday, as Bitcoin (BTC) struggled to regain its recent upward trajectory, Santiment shared that funding rates suggest an increase in bearish bets.
“Positive sentiment towards Bitcoin has plummeted despite the mid-cap crypto market rally this week. Many traders, particularly on Binance, are opening shorts in the expectation that BTC will fall again,” the platform wrote.
Bullish commentary on Bitcoin’s price has fallen to about a third of the rate seen four months ago. Data also shows that traders are increasingly betting against BTC’s near-term rally.
📊 Positive sentiment towards Bitcoin has plummeted despite the mid-cap cryptocurrency market rally this week. Many traders, particularly in @binanceare opening shorts with the expectation that BTC will fall again. Both factors increase the probability of the cryptocurrency rising. photo.twitter.com/50Z1TvJpUx
— Santiment (@santimentfeed) July 18, 2024
Bitcoin Holders Withdraw BTC From Exchanges
Bitcoin’s surge to $66,000 earlier this week has given way to a decline to around $63,380. The price has fallen just over 2.5% in the past 24 hours, which notably is what analysts at Bitfinex said would likely happen, as highlighted in our previous coverage.
While positive sentiment has waned and traders are increasing short positions, Santiment suggests that these factors “increase the likelihood of the cryptocurrency rising.”
Cryptocurrency analyst Woo Minkyu noted in a publish On Thursday, Bitcoin holders recently withdrew large amounts from exchanges. This happened on July 5, when BTC fell below $54,000 – a scenario that coincided with the massive liquidation pressure from the German government and the initial BTC transfers by Mt. Gox.
At the time, holders withdrew $3.8 billion worth of BTC from exchanges and helped prices jump from around $56,000 to over $65,000.
This week, on July 16, Bitcoin holders again raided exchanges, withdrawing another $3.4 billion worth of BTC. Shorts were caught by surprise after that, although the main cryptocurrency has fallen again in the last 24 hours amid new sentiment driven by Mt. Gox.
Although prices are below the week’s highs, this BTC movement on exchanges suggests that holders are planning to hodl, which usually positively affects the price.