The portal studied users’ reactions and moods about Bitcoin from their Twitter posts, noting a steep rise in the number of positive mentions.
The so-called ratio and quantity of positivity metric surged ahead of the cryptocurrency’s third halving.
An anonymous market speculator, a billionaire Wall Street veteran and an emerging tech entrepreneur have one thing common: they all say great things about Bitcoin via their Twitter profiles.
At least that is what Santiment, a popular data analytics portal, found after studying endless good and adverse reactions about the world’s leading cryptocurrency on the twelfth largest social media platform. The firm noted that Twitteratis’ optimism over Bitcoin surged to its two-year high – right ahead of its widely-covered technical upgrade called “halving.”
“Since beginning to track Sentiment Volume Consumed data on various crypto platforms 25 months ago, BTC’s community’s ratio and quantity of positivity are at all-time high levels,” Santiment tweeted. “The crowd is optimistic that this post-halving looks bright!”
Halving refers to a 50 percent cut in Bitcoin’s supply rate. After every four years, or after mining 210,000 blocks on the Bitcoin blockchain, a pre-programmed algorithm inscribed within the cryptocurrency’s source code slashes the mining reward. Investors treat the event as super-bullish, given bitcoin’s euphoric moves after the last two halvings.
Moods as Volatile as Bitcoin Price
Santiment attached a chart alongside to show how people underwent volatile mood swings during Bitcoin’s equally-volatile price movements. The positivity volume readings (oranged) slipped below zero in March 2020, the months that saw the cryptocurrency crashing by more than 50 percent. It later rebounded above zero just as the price made a similar upside move.
Bitcoin Sentiment Volume Consumed | Source: Santiment
The chart also offered interesting insights into Bitcoin’s most optimistic periods. People started tweeting good things about the cryptocurrency in the second financial quarter of 2019. It had surged from $4,000 to $14,000 in the said period.
Nevertheless, the number of positive tweets posted back in 2019 was not as consistent as they are in April-May 2020. It showed that people are now more confident about an extended price rally in the bitcoin market.
Financial Crisis
The Bitcoin community’s positivity surfaces amidst the fast-spreading coronavirus pandemic and its negative impact on the global economy. The virus has brought the world to a standstill. People are losing jobs, businesses are suffering losses, and analysts are posting scary market outlooks for the rest of the year.
The cryptocurrency sector is full of analysts and veterans that had envisioned a crisis-like scenario. They had also proposed Bitcoin as a hedge against such market turmoils. That also explains why – suddenly – people have started posting good things about the cryptocurrency…
…except Peter Schiff.
Photo by Austin Chan on Unsplash