Social Media Buzz Deflates Potential Crypto Bounce

The trend of the crypto market negating crowd expectations in October has continued. According to data from Santiment, the crypto market showed some bounce potential today which was deflated by bullish social media buzz. 

The crypto market intelligence and social metrics platform pointed out that on the back of a Bitcoin (BTC) run up to a daily local high of around $19,600, the crowd began spamming social platforms with words like 'bullish,' 'buying' and 'bought.'

The spike in social media optimism was the largest the market has seen in two months. However, the market soon reacted in opposition to the crowd sentiment as prices dropped in both the crypto and equities markets until the excitement went away, the observation noted. 

📊 #Equities and #crypto showed some bounce potential today, and the crowd began to really spam words on social media like #bullish, #buying, and #bought. As per usual, prices then dropped and moved in the direction of the crowd's least expectation. https://t.co/XaYq7zVMxP pic.twitter.com/HNmE7xjZ06

— Santiment (@santimentfeed) October 18, 2022

Santiment first pointed out this trend last week when it noted that despite the long-term crowd sentiment remaining negative, swing trades in October have been dictated by how often bullish and bearish calls have been made on social platforms. 

Crypto market still bearish but with bullish undertones 

The BTC market is eliciting a variety of opinions from analysts. U.Today reported that the world's largest crypto, BTC, while in a bear market has been noted to have markers that are bullish. BTC has been decoupling from the stock market, outstripping the S&P 500 and Nasdaq indexes. 

Similarly, trading firm Cumberland noted that the presence of healthy BTC trading volumes in the market differentiates the current bear market from other bear markets.