“Everyone is shouting it's going up”...Santiment warns of correction amidst overheated Bitcoin optimism

▲ Bitcoin (BTC)

As optimism towards Bitcoin (BTC) surged to its most one-sided level this year, the market is seeing increasing warnings of a short-term correction.

According to crypto-specific media outlet Cointelegraph on May 31 (local time), crypto sentiment analysis platform Santiment stated that Bitcoin-related sentiment on social media showed the strongest bullish bias this year. Santiment explained, “Sentiment towards Bitcoin surged to 2.23 bullish comments for every 1 bearish comment, the most one-sided positive ratio since 2026.”

Santiment pointed out that excessive optimism should be viewed with caution based on past trends. Santiment stated, “The two previous major spikes in positive ratios this year preceded short-term price declines, and extremely negative readings marked local bottoms.” It added, “The current overheated optimism stands in stark contrast to the bearish outflows from Bitcoin spot ETFs and requires caution.”

According to Cointelegraph, Bitcoin spot ETFs recorded outflows for 10 consecutive trading days until Friday. The total net outflow since May 15 exceeded $2.97 billion. Market participants monitor investor sentiment to make short-term buy and sell decisions, but there have been many instances where the cryptocurrency market moved contrary to the expectations of the majority.

Santiment explained, “Extremely positive sentiment readings have historically more often preceded short-term declines than sustained rallies.” Tyler Winklevoss, co-founder of Gemini, said on X (formerly Twitter) when Bitcoin fell to its yearly low of $60,000 in February, “Crypto sentiment is so bad right now that it’s actually quite bullish.”

Meanwhile, the Crypto Fear & Greed Index, which measures overall crypto market sentiment, recorded 23 on Saturday, indicating 'extreme fear'. Michael van de Poppe, founder of MN Trading Capital, said of the current crypto market sentiment, “It’s the worst I’ve seen. It’s worse than 2022, worse than 2018. Nobody believes the future of crypto assets will be good.” Cory Klippsten, CEO of Swan Bitcoin, responded to claims that individual investor sentiment has less influence after increased institutional interest, saying, “It still has an impact. It’s not a structure where BlackRock owns Bitcoin and Fidelity owns Bitcoin. You have to remember that most of the accounts actually buying are individual accounts.”

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*