Decoding Investor Response: Bitcoin Post-Record Highs Sentiment Analysis

Key Points

• Bitcoin reached a historic peak in 2024 due to bullish investor expectations, but has since seen a downturn.
• Current sentiment mirrors that of September 2024, indicating investor uncertainty and hesitation.

Bitcoin’s Rise and Fall

In 2024, Bitcoin reached an unprecedented high due to bullish investor expectations, as shown in the Bitcoin Sentiment Vote chart.

Bitcoin’s price soared above $100,000, while the Vote Up sentiment intensified significantly.

However, after reaching its peak, the market sentiment regarding its value plummeted quickly.

The sentiment turned negative as traders and investors began voting down, leading to lower sentiment values.

Market Sentiment and Investor Behavior

The rally began with optimistic expectations, but soon turned gloomy with fear and traders selling off their holdings after reaching the highest point.

The price of Bitcoin started a downtrend after peaking, with the cryptocurrency settling below $85,000 by March 2025.

The shift in investor sentiment is indicative of a deepening market apprehension.

This is particularly true as the sentiment is now akin to what it was in September 2024, just before the bullish period began.

Bitcoin’s sentiment levels are now mirroring the trends of September 2024.

The Sentiment Vote suggests that March 2025 marked the return of sentiment ratios identical to those in September 2024, indicating uncertain feelings.

The recent market trend showed a significant fall compared to the previous all-time high levels above 12, which Bitcoin reached at its peak.

These indicators point towards a neutral-to-bearish outlook as the “Vote Down” sentiment continues to rise.

The prevailing sentiment among traders matches the previous market conditions before the rally, suggesting that they remain doubtful about Bitcoin’s future performance.

The same situation prevails now as it did before Bitcoin’s major upward surge, with investors displaying reluctance.

Long-term Holders’ Impact on the Market

Lastly, Bitcoin’s STH/LTH Supply vs. ETF Flows vs. MicroStrategy chart indicated sustained selling pressure from Long-Term Holders (LTH).

Despite the pace slowing down since Bitcoin surpassed $100,000, a 30-day LTH supply reduction of 89,738 BTC could suggest ongoing profit-taking.

The chart’s downtrend in LTH position changes could be a sign of risk-off behavior, aligning with the bearish sentiment from the first chart.

The persistence of LTH selling, albeit at a reduced rate, hinted at a lack of confidence in Bitcoin’s immediate recovery.

This trend further supports the return of sentiment to September 2024 levels, reinforcing a cautious market outlook.

As Bitcoin struggles to regain upward momentum, investor behavior continues to reflect hesitation and uncertainty about its future trajectory.