Data shows that the positive sentiment around Bitcoin has spiked on social media after BTC\u2019s return above $58,000, implying investors may feel FOMO.<\/p>\n
According to data from the analytics firm Santiment<\/a>, the crowd has recently shown a sudden burst of optimism around Bitcoin. The indicator of relevance here is the \u201cPositive Sentiment vs. Negative Sentiment Ratio,\u201d which, as its name suggests, keeps track of the ratio between the positive and negative comments on social media related to a given coin.<\/p>\n The analytics firm sources posts\/threads\/messages from platforms like Twitter, Reddit, Telegram, and 4Chan. To determine whether these posts are negative or positive, Santiment puts them through a machine-learning model.<\/p>\n When the indicator has a value greater than 1, the comments related to positive sentiment outweigh the negative ones. On the other hand, being under the threshold suggests that most social media users share a negative sentiment.<\/p>\n Now, here is a chart that shows the trend in the Positive Sentiment vs. Negative Sentiment Ratio for the top two coins in the sector, Bitcoin and Ethereum, over the past few months:<\/p>\n As displayed in the above graph, a huge spike in positive sentiment vs. negative sentiment was observed for Bitcoin after the latest\u00a0<\/a>cryptocurrency recovery.<\/p>\n The peak of this spike has corresponded to twice as many positive posts as negative ones cropping up on the major social media platforms. This is the first time the indicator has reached such a high level.<\/p>\n While this indicates that the investors feel bullish about the asset, the optimism scale could be concerning. This is because BTC has historically tended to go against<\/a> the expectations of the majority, with the probability of a contrary move rising, the more sure the crowd has become of a direction.<\/p>\n