Key Points
- Bitcoin’s positive sentiment has experienced a significant drop, as per Santiment’s analysis.
- Despite the drop in positive sentiment, the movement of Bitcoin from exchanges suggests that holders plan to hodl.
Market intelligence platform Santiment has noted a “serious decline” in Bitcoin’s positive sentiment.
On Thursday, as Bitcoin (BTC) found it challenging to reclaim its recent upward trajectory, Santiment reported a surge in bearish bets based on funding rates.
Bullish Commentary and Bearish Bets
The platform noted a drop in positive commentary about Bitcoin despite a moderate bounce in the crypto market this week. Particularly on Binance, many traders are opening short positions, expecting a drop in BTC.
Bullish commentary on Bitcoin’s price has fallen to about a third of what it was four months ago. Data also shows an increase in bets against BTC rising in the short term.
Bitcoin Holders Withdraw from Exchanges
After Bitcoin’s surge to $66,000 earlier this week, its price has declined to around $63,380. This drop of just over 2.5% in the past 24 hours is in line with what Bitfinex analysts predicted in earlier coverage.
While positive sentiment has declined and traders are increasing short positions, Santiment suggests these factors “increase the likelihood of cryptocurrency rising.”
Crypto analyst Woo Minkyu noted in a post on X on Thursday that Bitcoin holders have recently withdrawn substantial amounts from exchanges. This happened on July 5 when BTC crashed below $54,000, coinciding with massive sell-off pressure from the German government and initial BTC transfers by Mt. Gox.
At that time, holders withdrew BTC worth $3.8 billion from exchanges, helping prices to jump from around $56,000 to above $65,000.
On July 16 of this week, Bitcoin holders again withdrew from exchanges, pulling out another $3.4 billion worth of BTC. Shorts were caught off guard after this, although the flagship cryptocurrency has again dipped in the past 24 hours amid fresh Mt. Gox-driven sentiment.
Despite the dip in prices from week highs, this movement of BTC from exchanges suggests that holders plan to hodl, which has often positively affected the price.
