Bitcoin Slumps Under $64K Amid Historic ‘Negative’ Sentiment

Bitcoin’s {{BTC}} slow decline over the past few weeks accelerated on Friday, with the price falling more than 3% in the last 24 hours to a nearly five-week low of $63,700, now 9% lower than it was last month.

But contrarian bulls may find relief as indicators tracked by analytics firm Santiment show that mass sentiment towards BTC is currently at an “extremely negative” reading for the fourth week.

“The crowd is mostly fearful or apathetic towards Bitcoin,” the firm said in its X post on Friday. “Such long FUD levels are rare as traders continue to capitulate,” they added. “BTC investor fatigue, combined with whale accumulation, often leads to patient-rewarding bounces.”

🫣 The crowd is mostly fearful or indifferent towards Bitcoin as prices range from $65k to $66k. This extended FUD level is rare as investors continue to capitulate. BTC investor fatigue combined with whale accumulation often leads to patient-rewarding bounces. pic.twitter.com/WMy3lbdjEB

— Santiment (@santimentfeed) June 20, 2024

Santiment’s Weighted Sentiment Index measures Bitcoin mentions on X and compares the ratio of positive and negative comments and trading volumes to gauge how the crowd feels about Bitcoin overall. The index, which showed a value of -0.73 as of Friday, has been negative since May 23.

Elsewhere, data from Google Trends shows a decline in retail search interest. The tool allows users to compare the relative volume of searches. A downward line means that a search term’s popularity is decreasing relative to other popular terms. Data shows that searches for “bitcoin” worldwide have been declining steadily since March 2024.

(Google Trends)

BTC prices have generally suffered over the past few weeks due to a $1 billion sell-off from major shareholders, the strength of the dollar and a strong US tech index market that could attract investors’ money.

Exit activity from U.S.-listed spot bitcoin exchange-traded funds (ETFs) has also reached its worst level since late April, with $900 million leaving the products so far this week. These figures approach a total net outflow of $1.2 billion in the trading sessions from April 24 to May 2.

Some traders expect Bitcoin to reach the $60,000 level in the near term due to the lack of growth catalysts, but as previously mentioned, the long-term outlook remains bullish.