{"id":152801,"date":"2021-01-12T21:14:54","date_gmt":"2021-01-12T18:14:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/underhyped-bitcoin-sentiment-lags-despite-bull-run\/"},"modified":"2021-01-12T21:14:54","modified_gmt":"2021-01-12T18:14:54","slug":"underhyped-bitcoin-sentiment-lags-despite-bull-run","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/underhyped-bitcoin-sentiment-lags-despite-bull-run\/","title":{"rendered":"# Underhyped? Bitcoin sentiment lags despite bull run"},"content":{"rendered":"

“# Underhyped? Bitcoin sentiment lags despite bull run <\/strong>”<\/p>\n

Since its drop below $4,000 in March 2020, Bitcoin (BTC) has ridden a bullish trend all the way past its 2017 all-time high, recently hitting almost $42,000. During that time, however, Bitcoin\u2019s Twitter<\/a> activity has underperformed in comparison to its price.\u00a0<\/p>\n

Looking at information from crypto data outfit The TIE indicates that Bitcoin\u2019s price is travel<\/a>ing above its Hype-To-Activity Ratio \u2014 a metric which shows tweet volume against asset trading volume \u2014 since 2019.\u00a0<\/p>\n

\u201cHype-To-Activity Ratio measures the number of tweets a particular coin has per each $1M in reported trading volume of that coin,\u201d The Tie\u2019s CEO, Joshua Frank, told Cointelegraph, as previously reported. Based on a study from The Tie, posted<\/a> in August 2019, 1.02 came in as the average Hype-To-Activity Ratio score across the industry. <\/p>\n

Bitcoin\u2019s Twitter hype vastly overshadowed its price for most of 2018, coming down to intersect with the price for a brief period in May, 2019. Twitter hype continued falling, finding itself below price in the latter half of May, and has remained under price since then. Even at Bitcoin\u2019s recent peak on Jan. 8, 2020, the digital asset only held a 1.24 Hype-To-Activity score \u2014 just a tad above average industry levels. <\/p>\n

Source: The Tie<\/em><\/figcaption><\/figure>\n

Mainstream media coverage, however, skyrocketed after October 2020. When Bitcoin\u2019s price rises dramatically, the asset gains more mainstream attention, as seen during its 2017 rise to nearly $20,000. Bitcoin has surged in price since October, logically flagging media attention. <\/p>\n

Source: The Tie<\/em><\/figcaption><\/figure>\n

A number of big mainstream entities, such as MicroStrategy and Square, began announcing Bitcoin purchases in 2020, impacting the scene. \u201cThe Bitcoin rally was clearly led by institutional investors,\u201d Frank told Cointelegraph on Monday, adding:<\/p>\n

\u201cAs Bitcoin surpassed $20K in December, the 30-day average Tweet volume on Bitcoin was only half of 2017\/2018 highs. The lack of Twitter conversations suggests that those initially buying were a small number of large investors, rather than a large number of small investors.\u201d<\/p><\/blockquote>\n

Using tweets in line with market cap, NVTweet Ratio data from The Tie gives rationale for a big-player-led Bitcoin price trend narrative, according to Frank. Recent data, however, suggests increased retail participation \u2014 some of which has shown up in Twitter chatter about BTC. Record-level Bitcoin mentions on Twitter came in around the same time as Bitcoin\u2019s recent price correction. Frank added:<\/p>\n

\u201cGeneral<\/a>ly speaking we have found that extremely high sentiment in conjunction with abnormally high Twitter activity tends to be a negative signal on Bitcoin price in the short to medium term. Bitcoin’s long-term sentiment (a measure of how positive conversations have been over the past 50 days vs. the previous 200) is near an all-time high.\u201d<\/p><\/blockquote>\n

Bitcoin\u2019s price recently fell app<\/a>roximately 28% from its high, but has recovered slightly since the drop at time of publication. <\/p>\n