Santiment Identifies Unusual Negative Sentiment in Crypto Market
- The bulk of the negative sentiment feeding into the crypto industry comes from Twitter.
- Bulls could capitalize on this level of negativity in the markets by trading the bounce.
Santiment, the market intelligence platform based on social metrics and on-chain data, has identified an ongoing high negative crypto sentiment. In a tweet, Santiment confirmed it is difficult ascertaining the main reason behind what it described as one of the highest levels of FUD it has ever recorded.
From its social analysis, Santiment observed that the bulk of the negative sentiment feeding into the crypto industry comes from Twitter. Many crypto Twitter users appear to be using words promoting fear and uncertainty in the crypto market, as most crypto-related tweets suggest a bearish market.
According to Santiment, there is an unusually outrageous amount of negative comments coming out of Twitter concerning the crypto market. It noted that #cryptocrash has been a prime off-and-on trending hashtag on the platform long before the 5% drop in Bitcoin price, which happened last Friday.
In a bullish tone, Santiment’s in-house crypto market analyst with the identity ‘brianq’ told readers that bulls could capitalize on this level of negativity in the markets by trading the bounce. According to him, this overwhelming negativity can lead to a nice bounce to silence the critics.
Brianq advised crypto enthusiasts to focus on funding rates, considering there could be inflation in the negative comments surrounding the crypto market. He noted that there could also be a high level of indecision among traders in shorting or longing the markets right now.
Some respondents under Santiment’s original tweet attributed the negative sentiment to the Silvergate crisis and the SEC’s recent declaration that all altcoins must be classified as securities.