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.
Bitcoin held firm in the face of geopolitical shocks
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 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.
“Bitcoin has shown real strength through tough conditions, with inflation cooling, oil risk aside, adding tailwinds so too a new Fed chair only months away and the Clarity Act inching closer to implementation.”
“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.
FOMO could be a good sign overall
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.
“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.
Leave a Reply
You must be logged in to post a comment.