Bitcoin faces an ‘extended level of FUD’ – Santiment reports

According to data from crypto intelligence platform Santiment, Bitcoin has been experiencing an “extended level of FUD” on social media platform X, resulting in sideways trading at the $65,000 mark. In addition, the crypto market saw a big shift on June 20, with spot Bitcoin ETFs losing $140 million for the fifth day in a row.

Also Read: Germany’s Bitcoin sell-off ushers in the weekend market decline

Bitcoin’s price has been continuously declining, showing no signs of a rebound this week. The broader crypto market is also experiencing a downturn, with most coins seeing their value drop over the last 24 hours.

Bitcoin echoes trading troubles

Bitcoin has been struggling in recent days and has been unable to make any significant recovery. Santiment points out that “the crowd is mainly fearful or disinterested toward Bitcoin as prices range between $65K to $66K.”

The analytical platform explains that “this extended level of FUD is rare, as traders continue to capitulate. BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient.”

According to CoinMarketCap data, the price of Bitcoin has fluctuated over the past week, reaching highs near $67,294 and lows around $64,180.

Santiment highlighted its Weighted Sentiment Index, which has consistently shown a negative trend since May 23. This index measures BTC mentions on X and analyzes the positive and negative comments ratio.

There has been a wave of negative sentiment surrounding Bitcoin on social media, with members of the crypto community expressing their concerns. This includes influential traders and analysts who have a large following.

Spot BTC ETFs experience major declines

Bitcoin ETFs experienced a significant outflow of funds on June 20, with a total of $139.88 million being withdrawn. This is the fifth day in a row that traders have seen outflows. There was a noticeable trend earlier in the week, as a significant amount of $152.4 million was withdrawn from these funds on June 18. The markets were not open on June 19 due to a holiday.

On the other hand, BlackRock’s IBIT ETF stood out by attracting an inflow of $1.5 million, bringing its total inflow to a remarkable $14.67 billion. These different movements showcase the various strategies investors are using to navigate the unpredictable crypto market.

Upcoming U.S. private-sector PMI data on June 21 could be a significant turning point for the market. If these numbers indicate a potential Federal Reserve rate cut in September, it may put a stop to the ongoing outflow streak. If the U.S. S&P Global Services PMI exceeds the predicted decline from 54.8 to 53.7 in June, it could result in a sixth consecutive day of outflows.

Bitcoin market price action

The current value of BTC is $64,084.98. This represents a 0.7% increase within the last hour but a 2.5% decline compared to yesterday. The current value of BTC is 4.2% lower than it was seven days ago. The Bitcoin Fear and Greed Index sits at 63, signaling a sentiment of greed.

Today, the global crypto market cap stands at $2.46 Trillion, with a -2.19% change in the last 24 hours and a 102.68% change compared to one year ago. The market cap for BTC currently stands at $1.26 trillion. This marks a Bitcoin dominance of 51.22%. 

Meanwhile, stablecoins’ market cap is $162 Billion, accounting for 6.58% of the total crypto market cap.

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Cryptopolitan Reporting by Florence Muchai