In recent weeks, Bitcoin (BTC) has experienced a gradual decline, which accelerated on Friday. The cryptocurrency’s value plunged over 3% within 24 hours, reaching a nadir of approximately $63,700—its lowest in five weeks, and marking a 9% decrease over the past month.
Despite this downturn, contrarian investors might find solace in data from analytical firm Santiment, indicating that the market sentiment towards BTC has lingered in the “extreme negative” zone for four consecutive weeks. “The prevailing sentiment is predominantly one of fear or apathy towards Bitcoin,” the firm noted in a post on X. “Such an extended period of fear, uncertainty, and doubt (FUD) is uncommon, as traders continue to capitulate,” they elaborated. “Typically, BTC trader exhaustion, coupled with whale accumulation, culminates in rebounds that benefit those who remain patient.”
Santiment’s Weighted Sentiment Index, which evaluates Bitcoin mentions on X by comparing the ratio of positive to negative comments alongside trading volumes, registered a -0.73 reading as of Friday. This negative sentiment has persisted since May 23.
Concurrently, Google Trends data reveals a waning interest in retail searches. This tool enables users to compare the relative volume of searches, with a downward trend indicating a decline in a search term’s popularity relative to other popular terms. Global searches for “Bitcoin” have been consistently declining since March 2024.
BTC prices have been under pressure recently due to several factors, including $1 billion in sales from major holders, the strength of the dollar, and a robust U.S. technology index market that may be attracting investor capital.
Moreover, outflows from U.S.-listed spot Bitcoin exchange-traded funds (ETFs) have reached their worst levels since late April, with $900 million exiting these products this week alone. These outflows are approaching the $1.2 billion total net outflows recorded between April 24 and May 2.