Crypto sentiment falls even as Bloomberg tips Bitcoin will hit $400K

Analytics company Santiment reports that cryptocurrency sentiment has fallen to near-record low levels for 2021 — even as some experts are doubling down on $400,000 Bitcoin’s price target.

Sentiment nosedived following Bitcoin’s drop below $60,000 to its current price of $56,300 and Ethereum’s dip under $2,000 this week, according to Santiment. Ether is currently trading at $1,986

The crowd mood toward #Bitcoin and #Ethereum appears to have dropped to extreme negative territory after $BTC fell back under $60k & $ETH dipped back under $2k this week. Historically, buying during this level of #FUD & fear is a #bullish opportunity. https://t.co/u7LKbvoqSt pic.twitter.com/ZTxQFroEfM

— Santiment (@santimentfeed) April 7, 2021

But other analytics platforms show a less convincing shift with crypto predictive data platform Augmento seeing sentiment slide from 'bullish' to 'slightly bearish'. The Alternative Crypto Fear and Greed index meanwhile shows almost no change, with the counter still clearly sitting at “greed”

Yesterday’s sell-off, which saw the entire cryptocurrency market cap drop briefly below $1.8 trillion before stabilizing around $1.9 trillion, doesn’t appear to bother seasoned analysts. Quantum Economics founder Mati Greenspan stated in his April 8 newsletter that the dip “took place on relatively low volumes.”

He noted that Bitcoin miners seem to have not even noticed the dip with the network’s hash rate reaching a new all-time high of 179 million exahashes, adding “that miners are hoarding Bitcoin right now instead of selling it back to the market.” This is often taken as a sign they expect higher prices. 

History suggests BTC only getting started

Released on April 5, a report by Bloomberg Intelligence Strategist Mike McGlone predicted Bitcoin could soon approach $400,000 based on past Bitcoin bull runs, adding:

“In September, 180-day volatility on the crypto about matched the all-time low from October 2015. From that month's average price, Bitcoin increased a little over 50x to the peak in 2017”

Although it doesn’t give a specific time-frame for when this peak might be achieved, the report does specify that over the next quarter the price is likely to “breach $60,000 resistance and head toward $80,000.”

Bitcoin analytics account “Ecoinometrics” tweeted that historically, the BTC price broke out between 300 to 350 days from previous halvings. We are currently at 329 days from the latest halving. If it plays out anything like previous halvings next May could see a Bitcoin price past $700,000... or drop to well below $40,000.