The sentiment in Bitcoin has turned positive, reaching its highest level in more than a year. The public comments on social media towards Bitcoin have increased in favor of the digital currency. This sudden positive sentiment can be attributed to the increasing global risks. The surge came after BlackRock, the largest asset manager with $9 trillion in assets, spoke on Bitcoin. They highlighted Bitcoin as one of the essential elements of contemporary international relations.
Surge in Bitcoin’s Social Media Sentiment
The recent Santiment data shows that there has been an increase in the number of tweets that have had ‘bullish sentiment’ in the last week. A shift in the positivity/negativity ratio has been observed to a greater extent than it has in over a year. Such a level of optimism indicates that traders may be having FOMO (fear of missing out), which can be a problem since prices tend to rise during such a time. This period of optimism can also be replaced by pessimism, fear, uncertainty, and doubt (FUD). Historically, the Bitcoin price reached an all-time high when the rest of the market showed signs of doubt rather than enthusiasm.
🥳 A surge of positive Bitcoin commentary across social media has come in over the past week. So much so that the ratio of positive comments is more than double the amount of negative comments for the first time in over a year.
— Santiment (@santimentfeed) September 12, 2024
The crowd's sudden optimism toward crypto's top… pic.twitter.com/jnf6d0rOWM
On the other hand, Ethereum’s sentiment has risen only slightly higher. This comes against the backdrop of recent remarks by Ethereum’s co-founder Buterin, who voiced his concerns over the future scalability problems of Ethereum. Therefore, there is a more moderate outlook in Ethereum in comparison to the rapid growth of Bitcoin.
Bitcoin & Ethereum Whale Transactions Drop Since March PeakBlackRock Endorses Bitcoin as a Hedge
The leading conservative institutional investor, BlackRock, has openly admitted Bitcoin’s relevance to the world. According to the company, BTC can hedge against global dysfunction and decreasing trust in governments, banks, and fiat currency. The company’s recent statement has further fuelled the debate over Bitcoin as an effective global currency.
BlackRock Bitcoin ETF has been the best-performing crypto-based ETF in the market since its launch in January 2024. After the launch, Bitcoin surged to a new all-time high of $73,000 in March 2024. This move has strengthened the argument that crypto-based financial products are now essential to global finance.
Due to global market instabilities, investors are moving toward Decentralized or legacy assets such as Bitcoin. Furthermore, social media reactions with positive sentiments surrounding Bitcoin and backing from institutions such as BlackRock show a bullish outlook, even as traders weigh the risks of potential price corrections.
