Bitcoin’s recent resurgence to $88,500 has rekindled optimism among retail traders. However, analysis from blockchain analytics firm, Santiment, advises caution. The firm’s examination of social media predictions has revealed a trend that can be a warning sign for investors.
In late February and early March, Bitcoin faced significant pressure, with prices plummeting to $78,000 twice. This decrease was fueled by a combination of factors, including the economic policies and tariffs of President Trump, as well as broader macroeconomic factors.
There were heightened concerns about inflation and potential stricter monetary policies from the Fed, which contributed to a risk-off sentiment. This sentiment made Bitcoin and other altcoins less attractive compared to safer assets. During this same period, gold prices escalated to new heights, reaching $3,057 in March 2025, following a high of $2,956 per ounce in February.
The fall in price sparked widespread fear among traders and investors. However, the second half of March witnessed a stark reversal, with Bitcoin rebounding to $88,500. This recent price recovery has shifted the market sentiment towards a mild form of greed, according to Santiment.
Santiment’s analysis of social media showed traders predicting bullish prices ranging from $100,000 to $159,000 for Bitcoin, while bearish forecasts spanned from $10,000 to $69,000. Santiment cautioned that crowd sentiment often signals the opposite of what is likely to happen next.
The firm’s historical data suggests that when the majority of social media users predict skyrocketing prices, the market is more prone to experience a downturn. On the flip side, when pessimism prevails and predictions turn grim, prices often recover.
Santiment recommends caution during periods of extreme market sentiment. Posts declaring “to the moon” or “lambo time” could, in fact, be warning signs of an imminent correction. Conversely, posts declaring “crypto is dead” or “Bitcoin is a scam” might signal an upcoming recovery.
As of press time, Bitcoin was trading at around $87,200, reflecting a 6% gain over the past week, according to CoinGecko data.
Arthur Hayes, co-founder of BitMEX, predicts that Bitcoin will exceed $110,000. He believes this will be driven by the US Fed transitioning from quantitative tightening to easing, a shift that could inject liquidity into the market and bolster Bitcoin’s price.
However, 10X Research founder, Markus Thielen, suggests that while easing measures and relaxed tariff discussions could support Bitcoin’s recovery, immediate catalysts for a dramatic surge appear limited. This insightful analysis presents a balanced perspective, underscoring the need for investors to remain cautious amidst potentially misleading market sentiment.
