Bitcoin sentiment falls to historic low amid fear and selling pressure

Sentiment around Bitcoin is at one of its lowest levels in years. The ratio of positive to negative posts on social media has fallen to 0.54, meaning negative reactions are almost twice as numerous as positive ones. Two news items are adding extra pressure: concerns surrounding Coldcard and the recent Bitcoin sale by Strategy.

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In short:

• The positive-to-negative ratio for Bitcoin on social media stands at 0.54, a historic low.
• News of a security flaw in Coldcard and the sale of 1,638 Bitcoin by Strategy are fuelling the negative mood.
• Historically, such peaks of fear are often followed by a price recovery, as sellers become exhausted.

Fear dominates social media

Analytics firm Santiment continuously measures sentiment on platforms such as X, Reddit and Telegram. Between 31 July and 4 August, the ratio of positive to negative Bitcoin posts fell to 0.54. This means that for every positive comment, there are almost two negative ones. According to Santiment, this is one of the most one-sided moments of fear in Bitcoin’s history.

The Bitcoin price currently stands at $64.100, a slight increase of 0.3% over the past 24 hours. That relative stability stands in stark contrast to the highly negative sentiment prevailing on social media.

Coldcard and Strategy as catalysts

Two specific developments are further stoking the fear. First, news of a security flaw in Coldcard is causing unrest among Bitcoin holders who rely on hardware wallets to keep their crypto safe. This undermines confidence in the broader infrastructure around Bitcoin storage.

Second, Michael Saylor’s Strategy is selling 1,638 Bitcoin for approximately $105 million. Traders are reacting not only to the sale itself, but also to the fear that the company may need to sell more Bitcoin to finance dividends, reserves and share buybacks. That uncertainty about future selling pressure is weighing on sentiment even further.

Historical pattern points to possible recovery

Santiment points out that extreme moments of fear have regularly preceded a price recovery in the past. When sentiment is so one-sidedly negative, panicked sellers eventually become exhausted. Meanwhile, parties with a long-term vision are waiting for forced sales before stepping in.

Historically, that pattern offers an increased chance of an upward correction. Whether that will also be the case now depends in part on how the news surrounding Coldcard and Strategy develops, and on whether new waves of selling follow.