- Sentiment among traders across social media platforms has turned negative with a rise in Fear, Uncertainty and Doubt.
- Crypto intelligence trackers are monitoring whale activity and on-chain metrics to determine what’s next for Bitcoin after sentiment turns bearish.
- Bitcoin price has typically rallied in periods that followed skepticism from market participants.
Bitcoin price has fallen sharply, staying below $27,600, as a rise in negative sentiment among crypto market participants weighs on the cryptocurrency. The decline came after a short rally driven by U.S. inflation data, confirming a downward trend that has been running for around one month, since the BTC price topped above $30,600 in mid-April.
Technical experts at crypto intelligence tracker Santiment say that Bitcoin price typically rallies when sentiment among traders turns negative on social media platforms.
Also read: Bitcoin, Ethereum prices rally as US CPI inflation falls to 4.9%
Bitcoin traders bow out as sentiment across social media turns negative
Brian Quinlivan, on-chain analyst and marketing director at Santiment, said that the current decline in Bitcoin price could represent a “buy the dip” opportunity for traders.
Santiment data shows that discussions on social media about crypto assets in the top 100 market capitalization list are falling compared with the previous thirty-day period. More specifically, discussions surrounding Bitcoin and other assets with large market capitalization declined 18%.
Treemap of asset-related discussions on social media
Interestingly, over the past thirty days Bitcoin price is down 7%, Ether price fell 4% and similar drawdowns are noted in assets in the top 10 on CoinGecko. This is one of the largest declines in a thirty-day period since June 2022, amidst shifting macroeconomic conditions and interest-rate hikes by the US Federal Reserve.
To assess market sentiment, Santiment asked traders if crypto markets have hit their tops in April and 43.7% of the voters agreed, suggesting that almost half of those polled don’t expect prices to increase further.
Santiment’s poll to assess market sentiment
Bullish divergence in whale accumulation chart
Bitcoin’s large wallet holders, popularly known as whales, bought 0.29% of the BTC supply between April 10 and May 10, a massive accumulation of the asset despite the decline in prices. There is a consistent increase in supply from addresses holding between 10 to 10,000 BTC, according to the whale accumulation chart.
The fact that prices fell and BTC holdings of whale wallets climbed signals a bullish divergence.
BTC whale accumulation chart
Experts consider this an interesting development since US Consumer Price Index (CPI) data for April showed that inflation fell to 4.9%, slightly below the 5% anticipated by markets. CPI data prompted a knee-jerk reaction of BTC traders which pushed Bitcoin higher.
Since then, however, Bitcoin price erased its gains and nosedived to the $27,000 level. It traded at around $27,400 at the time of writing, nearly 50 weeks away from its next halving. BTC price typically climbs closer to its halving, therefore long-term investors can expect a recovery in the asset within the next few months.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Semler Scientific reveals plans to buy 105,000 BTC by 2027
Semler Scientific (SMLR) announced a three-year plan on Thursday to boost its Bitcoin holdings to 105,000 BTC by the end of 2027. The announcement comes after it appointed a new executive to spearhead its Bitcoin strategy.

Ethereum Price Forecast: ETH network growth explodes as GENIUS Bill advances
Ethereum (ETH) is trading around $2,500 in the early Asian session on Friday despite a surge in new address growth over the past month. The development follows progress in digital assets regulations after the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) bill passed the Senate.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – BTC, ETH, XRP consolidate as traders await Trump’s decision
Bitcoin (BTC) price is hovering above the key support level on Friday; a breach below this level could trigger a sharp decline. Ethereum (ETH) and Ripple (XRP) followed BTC’s footsteps and stabilized around their crucial levels, with a failure below their support levels indicating a potential correction ahead.

Top Crypto Gainers: OKB, Sei, Bitcoin Cash – Altcoins shine through amid market volatility
The top cryptocurrencies in the market remain quiet at crucial support levels, while some altcoins experience a bullish spark. Top performers over the last 24 hours include OKB (OKB), Sei (SEI), and Bitcoin Cash (BCH) with over 8% recovery and key resistance breakouts.

Bitcoin: BTC could slump to $100K amid Trump-Musk tussle
Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.