Bitcoin markets received a boost today, with BTC rising to $63.8K ahead of its highly anticipated halving event in just over 36 hours. Santiment’s data indicates a persistent bearish sentiment among investors towards leading cryptocurrencies like BTC, ETH, BNB, and SOL, further supporting the case for potential growth. Santiment’s weighted sentiment metric is determined by blending the total social volume of an asset [mentions across social media] with its algorithmic evaluation of each comment as either bullish or bearish.
Crypto markets have seen a boost today, as Bitcoin has jumped back to $63.8K with just over 36 hours until its halving event. The crowd has maintained a consistently bearish sentiment toward top caps, which strengthens the argument for more rising.
Historically, when the crowd’s sentiment is highly extreme [positive or negative] in one direction, prices tend to move in the opposite direction. Based on numerous backtests, markets often move contrary to the crowd’s expectations over the 15+ year history of crypto.
The crypto community thought the bull market had ended just days ago after Bitcoin’s -16% drop from the all-time high of $73.6K on March 14th. Bear market mentions are on the rise. In the past, prices have been contrary to mass traders’ expectations. The sudden decline of FOMO along with a significant increase in FUD suggests that cryptocurrency might recover just before the halving or shortly after.
Bitcoin Halving Buzz
As reported by TronWeekly, Bitcoin has generated a lot of buzz in social media discussions as traders speculate on the benefits of holding through a potential prolonged correction following the halving. Despite persistent FUD-causing liquidations, attention remains on BTC and Fiat. Conversely, the altcoin sector, encompassing AI, gaming, DeFi, and meme coins, has seen significant retraction, redirecting focus to Bitcoin.
What’s unique about this halving is that the price has increased before the event, which is expected to take place on April 19 or 20. After the halving, the potential balance sheet of each Bitcoin miner is reduced by half. Additionally, the upcoming halving is expected to bring down the coin’s annual inflation rate from 1.73% to 0.85% due to the reduction in new block rewards from 6.25 to 3.125 BTC. At the current price, roughly $11 billion of new annual supply is set to be removed from the market.