Bitcoin proponents had a lot of expectations from 2020, given the impending Block Reward Halving and the expected bull run. The year started as per expectations as Bitcoin crossed the $10K mark in the first month itself. The traditional markets were falling but Bitcoin showed resistance, however, the outbreak of coronavirus led to chaos not just in the traditional market, but it also impacted Bitcoin’s price in the second week of March.
Bitcoin fell by almost 50% in one day, registering one of the biggest drops since its inception. Many believed that the drop was caused by panic selling while few others believe institutional investors liquidated their hedge in crypto to provide support in the traditional market. Whatever may be the reason, it seems the Bitcoin community is not fazed by the recent drop and is highly bullish on Bitcoin seeing another bull run and achieve its all-time high price.
Santiment, a behavior analytical platform looked into hundreds of social media posts related to cryptocurrencies to analyze the overall sentiment of the market. Santiment’s analysis suggests that on the day of the drop i.e 12th March the sentiment in the market was quite “volatile” too. Some of the investors shrugged off the drop and believed it served as a perfect opportunity for new entrants in the market who have been complaining about the price. While a few others called it Bitcoin’s doom where a few went on to predict a total collapse of the digital asset in the coming days.
well above negative sentiment despite of the volatility being caused by this pandemic. Other platforms, as we can see on https://t.co/r9exHfU30o, are a bit more negative right now. $BTC and other projects can show a clear buy signal when negative keywords are overtaking positive pic.twitter.com/AqEOSJyXXh
— Santiment (@santimentfeed) March 28, 2020
Bitcoin made headlines outside the crypto-verse as well
While crypto Twitter is known for voicing opinions strongly, the price drop on March 12 seemed to have garnered attention even outside the crypto verse. Santiment analysis suggested that negative sentiment prevailed on different social medias like Reddit, most of whom have been naysayers predicting Bitcoin’s doom.
While the COVID-19 pandemic surely had its share of impact on Bitcoin right before the halving, it seems Bitcoin proponents are aware of the volatility. The analysis is evident that despite the massive drop Bitcoin community is still behind cheering on for it to succeed.