Santiment: Declining Bitcoin $150K Predictions Signal Market Health
According to Santiment, the decreasing "retail optimism" surrounding Bitcoin represents a positive sign as market sentiment shifts back to neutral levels.
According to crypto sentiment analysis platform Santiment, the decreasing number of market participants predicting Bitcoin will achieve new record highs represents a constructive development for the market.
"Calls for Bitcoin to hit $150k to $200k, and even $50k to $100k, are drying up," Santiment said in a report on Friday.
"This reduction in FOMO and 'Lambo' memes is actually a healthy market indicator. It shows that retail optimism is fading," Santiment added.
Bitcoin sentiment bumps up to 'neutral'
Despite influential Bitcoin (BTC) proponents including BitMEX co-founder Arthur Hayes and BitMine chair Tom Lee publicly predicting Bitcoin would climb as high as $250,000 throughout 2025, the cryptocurrency's value peaked at $126,100 in October, subsequently entering a declining trend that resulted in closing the year below its opening price.
This declining trajectory persisted into the beginning of the new year, as Bitcoin fell to approximately $60,000 on Feb. 6, though it has subsequently recovered to $67,847 as of the time of publication, based on data from CoinMarketCap.
According to Santiment, sentiment surrounding Bitcoin, calculated through the proportion of positive versus negative social media discussions, has shifted from "extreme bearishness" into "neutral territory," which could potentially complicate trading decisions for market participants.
"Better to avoid trading in these scenarios or at least discount the significance of sentiment metrics in your analysis," Santiment said.
In the meantime, alternative metrics indicate that cryptocurrency investors continue to experience significant apprehension.
On Saturday, the Crypto Fear & Greed Index, an indicator that gauges broader crypto market sentiment, remained within "Extreme Fear" territory, registering a score of 8, which indicates investors are exercising extreme caution.
Nevertheless, Santiment indicated that overall activity across the Bitcoin network is "flashing warning signs," noting that transaction volume, active addresses, and network growth are all "steadily declining."
"These utility indicators suggest the network is being used less frequently. While not immediately bearish, this dormancy implies traders are sitting on their hands," Santiment said, arguing that market expansion would show growing user participation.