Bitcoin is back in ‘FOMO territory’ after crossing $70K: Santiment
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US President Donald Trump's recent comments about Iran helped trigger a Bitcoin rally, leading to an uptick in social media sentiment about Bitcoin.
Social media sentiment over Bitcoin has shifted back to optimism as Bitcoin recovered to over $70,000 on Tuesday, driven by US President Donald Trump’s recent comments that the war with Iran could be nearing an end.
In an X post on Tuesday, market intelligence platform Santiment shared data that shows the number of positive social media discussions has been steadily increasing after tanking on Monday.
“Across X, Reddit, Telegram, and other crypto-related discussions, the crowd is encouraged by Trump's comments that the war may soon end, and oil prices reversing course,” Santiment said.
It added in a separate post that “periods of uncertainty often trigger a search for alternative assets, and crypto markets tend to react quickly because they trade globally around the clock and are not tied to any single government or financial system.”
Tensions in the Middle East escalated last month after the US and Israel launched strikes against Iran. In response, Iran retaliated against several neighboring countries.
US President Donald Trump’s comments on Monday, however, signaled the war could be wrapping up soon, saying: “I think the war is very complete, pretty much,” though he later said in a Truth Social post that if Iran did anything to slow the supply of oil, the US would ramp up its military pressure on the country.
Ryan McMillin, chief investment officer of Australian crypto investment manager Merkle Tree Capital, told Cointelegraph that several other factors might also be driving a rebound in positive sentiment among traders.
Bitcoin's (BTC) strong resilience to geopolitical shocks and institutional momentum from companies such as Strategy, which bought nearly 18,000 Bitcoin last week and made a second purchase this week, could also be contributing, according to McMillin, along with Bitcoin holding above its February lows.
“Shorts are vulnerable; liquidity on the short side could get squeezed toward $80,000 before a true higher/lower decision point. Bears ruled for months, now they could face their first test of this cycle,” McMillin added.
Rachael Lucas, a crypto analyst at crypto exchange BTC Markets, told Cointelegraph that Bitcoin breaking back through $70,000 was also a catalyst, because it’s a “meaningful resistance point, and reclaiming it publicly, on social media feeds and price alerts, reignites the fear of missing a move.”
At the same time, a potential resolution to the Iran conflict, the oil price pulling back sharply, and progress on stablecoin regulation are also lifting the broader ecosystem and flipping the macro headwinds that have been suppressing sentiment, according to Lucas.
Despite social media discussions about Bitcoin trending positively, the Crypto Fear & Greed Index, which measures overall crypto sentiment, remained at 15, indicating it remains in “extreme fear.”
The Crypto Fear & Greed uses several sources for its ratings: Bitcoin volatility, dominance, market momentum, social media and Google Trends data.
Meanwhile, Google Trends data for “Bitcoin” returned a score of around 71 as of Wednesday, down from its peak of 100 on March 5.
“FOMO frequently becomes self-fulfilling in crypto. Sentiment flips from fear to greed attracts fresh buyers, boosts volumes, and drives short-term upside, as we've seen in past cycles,” McMillin said.
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“An oversold technical setup after five months of declines, five straight months down from the $126,000 all-time high in October has left Bitcoin heavily oversold, priming it for a relief rally at very least,” he added.
Lucas said that, along with positive sentiment, the on-chain data has some good signs too, with funding rates resetting constructively, and institutional flows through exchange-traded funds consistent.
“That's a different foundation to previous FOMO cycles that were driven largely by retail leverage,” she added.
Magazine: The debate over Bitcoin’s four-year cycle is over: Benjamin Cowen
Source: CoinTelegraph
