How Social Sentiment Has Played With Bitcoin's Price in a Historic End to 2024!

🧵 Bitcoin has enjoyed quite the journey in 2024's final stretch. The following graphic indicates the crypto community's mentions across X, Reddit, Telegram, 4Chan, BitcoinTalk, and FarCaster related to:

🟨 Bitcoin at $90K
🟥 Bitcoin at $100K
🟦 Bitcoin at $110K

Crypto markets historically move the opposite direction of the crowd's expectations, because the mass majority of the crowd is made up of retail traders. Just like any other sector, cryptocurrency is a zero-sum game. Small traders buy tops and sell bottoms, so whales make money.

In late November, there was a huge influx of traders worried about Bitcoin falling back to $90K after cryptocurrency's top asset was beginning to lose momentum following the 'Trump Pump'. Many were stating that they were waiting for BTC to fall back to $90K in order to buy more.

In early December, after retail traders were surprised that Bitcoin had instead ascended to above $103K (after repeated failed rallies to breach $100K), FOMO was rampant following BTC's historical moment. As you may guess, the celebration was short-lived.

By the 16th, Bitcoin reached a new (and currently standing) all-time high of ~$108.3K. Across social media, we began seeing high mentions of retail traders predicting how quickly a $110K market value would be reached, with many proclaiming this was their 'profit taking' target.

So what is the moral of the story? Well, there are really two groups of wallets that cause Bitcoin's (and therefore crypto's) market caps to move up and down.

1) The whales and sharks (for example, this pictured group of 10+ BTC wallets)
2) The vocal majority of small traders

If you like making money, history says that you should follow the long-term trajectory of key stakeholders (whales and sharks). You can also profit from being a contrarian from the crowd.

📈 Buy when the majority believes FTX, Mt. Gox, or Gary Gensler has destroyed cryptocurrency forever.

😏 Hold when the whales and sharks are continuously accumulating coins.

📉Sell when every meme coin is being considered "free money" without any logical reasons.

And if you like the type of metrics that take into account what both whales & retails are doing, feel free to check out Santiment's Sanbase platform. Here, you will find the most comprehensive on-chain & social metrics in the world to allow you to see what others in crypto can't.

We provide free 2-week trials to all, and you will instantly be able to check out the current state of all metrics shown in this thread, as well as thousands more. Get started here, and our team is more than happy to help you get ramped up!