Bitcoin Price Drops Below $64,000 Amid Unprecedented ‘Bearish’ Sentiment
Bitcoin’s price has experienced a gradual decline in recent weeks, with a more significant drop occurring on Friday. The price of BTC fell over 3% in the past 24 hours, reaching a five-week low of $63,700. This decline represents a 9% decrease over the last month.
Despite this downward trend, contrarian bulls may find solace in indicators provided by analysis firm Santiment. According to Santiment, crowd sentiment towards BTC has been consistently negative for the past four weeks. The firm noted that the prevailing sentiment is one of fear and disinterest towards Bitcoin. This prolonged period of Fear, Uncertainty, and Doubt (FUD) is uncommon and often precedes market bounces that reward patient traders.
Santiment’s Weighted Sentiment Index, which measures Bitcoin mentions and sentiment on social media platforms, currently stands at a -0.73 reading as of Friday. This index has been in negative territory since May 23, indicating an overall bearish sentiment among market participants.
In addition to social sentiment indicators, data from Google Trends reveals a decline in retail interest in Bitcoin. Searches for “bitcoin” have steadily decreased worldwide since March 2024, as shown by the search volume comparison tool.
The recent price decline in BTC can be attributed to several factors, including significant sell-offs by large holders totaling $1 billion, the strengthening of the US dollar, and the robust performance of the US technology stock market, which may be attracting investor capital away from cryptocurrencies.
Furthermore, outflow activity from US-listed spot Bitcoin exchange-traded funds (ETFs) has reached its highest level since late April, with $900 million exiting these products so far this week. This outflow is approaching the total net outflows of $1.2 billion recorded from April 24 to May 2.
Despite short-term bearish expectations that Bitcoin may drop to $60,000 due to a lack of immediate growth catalysts, the long-term outlook for the cryptocurrency remains positive. Traders are optimistic about a potential rebound, as historical trends suggest that periods of consolidation often precede bullish movements in the market.
