Social media sentiment for Bitcoin has returned to optimism as Bitcoin recovered to over $70,000 on Tuesday, which could end in the wake of US President Donald Trump’s recent comments about a war with Iran.
In an X message on Tuesday, market intelligence platform Sentiment shared data showing that the number of positive social media discussions has steadily increased since Monday’s criticism.
“Across X, Reddit, Telegram and other crypto-related discussions, the crowd is reeling from Trump’s comments that the war will end soon and that oil prices will go in the other direction,” Sentiment said.
It added in a separate message that “periods of uncertainty often trigger a search for alternative assets, and crypto markets react quickly because they trade around the clock around the world and are not tied to any government or financial system.”
Tensions in the Middle East escalated last month after US and Israeli attacks against Iran. In response, Iran took revenge on several neighboring countries.
US President Donald Trump’s statement on Monday, however, hinted that the war could end soon, saying: “I think the war is too complete, too much,” although he later said in a Truth Social message that the US would increase its military pressure on the country if Iran did anything to slow down its oil supply.
Bitcoin has held firm against geopolitical shocks
Ryan McMillin, chief investment officer at Australian crypto investment manager Merkle Tree Capital, told Cointelegraph that several other factors could also be contributing to the increase in positive sentiment among traders.
Bitcoin’s strong resistance to geopolitical shocks and institutional momentum from companies like Strategy, which bought about 18,000 bitcoins last week and made a second purchase this week, could also, according to McMillin, keep Bitcoin at its February lows.
“Bitcoin has shown real strength through tough conditions, with cooling inflation, oil risks, added tailwinds, so the new Fed is just months away and the LIGHT Act is getting closer to implementation.”
“Shorts are vulnerable; liquidity on the short side could squeeze to $80,000 before a real top/bottom decision is made. Bears have ruled for months, now they may face their first test of the cycle,” McMillin said.
FOMO can be a good sign
Despite social media chatter about Bitcoin’s positive trend, the Crypto Fear & Greed Index, which measures overall crypto sentiment, remained at 15, indicating that it remains in “extreme fear.”
The Crypto Fear & Greed uses several sources for its ranking: Bitcoin volatility, dominance, market momentum, social media and Google Trends data.
Meanwhile, Google Trends data for “Bitcoin” returned about 71 points as of Wednesday, down from a peak of 100 on March 5.
“FOMO is often self-reacting in crypto. The emotion turns from fear to greed, which attracts new buyers, increases volumes, and leads to short-term bullishness, as we’ve seen in past cycles,” McMillin said.
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“The oversold technical setup after five months of declines, five straight months from the October high of $126,000, has made Bitcoin very oversold and is at least ready for a relief release,” he said.
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