The cryptocurrency market crashed brutally. It all started when Tesla denounced the use of Bitcoin as a mode of payment for electric cars. The CEO Elon Musk had been a strong advocate of cryptocurrencies so the sharp turn in his stance resulted in bearish divergence in the market. The crash had been further fueled by a Chinese financial committee’s report which said to launch a crackdown on cryptocurrency mining. The crypto market took another hard hit after the news as China is accountable for a good proportion of Bitcoin mining.
However, is the crash really bad for the cryptocurrency market? The bull run had bought the cryptocurrencies and blockchain technology under the limelight. Corporate behemoths, governments, small retailers, and innovative startups have all accepted the technology because of its many use cases.
Sentiment data from a report published by Santiment.com – a sentiment data analytics platform –reveals that the crash may not be as bad for the acceptance of cryptocurrencies worldwide. The weekly report revealed that interest in cryptocurrencies had been increasing.
The social volume of Bitcoin had shot up drastically in the bear market. Interestingly, the social volume also exceeded the record high of the 2017 bull run. The data indicates growth in the cryptocurrency sphere. Mentions of the “bear market” had also increased drastically – which is to be expected.
Despite the bearish outlook of the market, the general sentiment for Bitcoin had stayed positive. With the “buy the dip” mantra, investors are positive that Bitcoin and other cryptocurrencies will eventually pick back up. It is also the positive sentiment that usually leads to crashes as the market becomes overheated and fear of corrections overtake. Bitcoin did see a shift in sentiment to the negative side after the Chinese Financial Committees report.