Bitcoin’s (BTC) gradual decline in recent weeks accelerated on Friday, with the price tumbling over 3% in the past 24 hours to reach a five-week nadir of $63,700, marking a 9% decrease over the past month.
Contrarian bulls might find solace as indicators from analysis firm Santiment reveal that crowd sentiment towards BTC has entered its fourth week of “extreme negative” territory. “The majority of the market is either fearful or apathetic towards Bitcoin,” the firm noted in an X post on Friday. “This prolonged period of FUD is unusual, as traders continue to capitulate,” they added. “BTC trader fatigue, coupled with whale accumulation, typically precedes rebounds that reward patient investors.”
Santiment’s Weighted Sentiment Index, which measures Bitcoin mentions on X and compares the ratio of positive to negative comments and trading volumes, registered a reading of -0.73 as of Friday. This index has remained in the negative since May 23.
Moreover, data from Google Trends indicates a decline in retail search interest for Bitcoin. This tool allows users to compare the relative volume of searches, and a downward-trending line signifies a decrease in a term’s popularity relative to other popular terms. Global searches for “bitcoin” have steadily diminished since March 2024, according to the data.
BTC prices have generally suffered in recent weeks, influenced by $1 billion in sales from major holders, the strengthening dollar, and a robust U.S. technology index market that may be attracting investor funds.
Outflow activity from U.S.-listed spot Bitcoin exchange-traded funds (ETFs) has also reached its worst level since late April, with $900 million exiting these products so far this week. These figures are approaching the $1.2 billion in total net outflows observed during trading sessions from April 24 to May 2.
Some traders anticipate Bitcoin might reach the $60,000 mark in the short term due to a lack of growth catalysts, although the long-term outlook remains bullish.