Bitcoin’s positive sentiment has seen a significant decline, as reported by analysts at the market intelligence platform Santiment. As Bitcoin struggled to regain its recent upward momentum, Santiment highlighted a surge in bearish bets through funding rates.

According to Santiment, “Positive commentary toward Bitcoin has plummeted despite the mid-sized crypto market bounce this week. Many traders, particularly on Binance, are opening shorts with the expectation of BTC dropping again.”

Bullish commentary on Bitcoin’s price has dropped to about a third of the rate observed four months ago. Data also indicates that traders are increasingly betting against Bitcoin rising in the short term.

Positive commentary toward Bitcoin has plummeted despite the mid-sized crypto market bounce this week. Many traders, particularly on Binance, are opening shorts with the expectation of BTC dropping again. Both of these factors increase the likelihood of cryptocurrency rising.

Bitcoin’s recent surge to $66,000 earlier this week has been followed by a decline to around $63,380. The price is down just over 2.5% in the past 24 hours. This decline aligns with predictions from Bitfinex analysts.

Despite the drop in positive sentiment and the increase in short positions, Santiment suggests these factors might “increase the likelihood of cryptocurrency rising.”

Crypto analyst Woo Minkyu noted that Bitcoin holders have recently pulled large amounts from exchanges. This happened on July 5 when BTC crashed below $54,000, coinciding with massive sell-off pressure from the German government and initial BTC transfers by Mt. Gox.

During that period, holders withdrew BTC worth $3.8 billion from exchanges, helping prices jump from around $56,000 to above $65,000. This week, on July 16, Bitcoin holders again withdrew another $3.4 billion worth of BTC from exchanges.

Although Bitcoin has dipped again in the past 24 hours, this movement of BTC from exchanges suggests holders are planning to hodl, a behavior that has often positively impacted the price.

For more updates and news on cryptocurrencies, investing, and finance, keep exploring Global Crypto News.

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