Santiment: Bitcoin falls back into the "FOMO zone" after surpassing the $70,000 mark

Social media psychology on Bitcoin has shifted to an optimistic state as this leading cryptocurrency recovers strongly, surpassing $70,000 on Tuesday. This rebound was driven by recent statements from U.S. President Donald Trump, suggesting that the conflict with Iran may be nearing its end.

In a post on X platform on Tuesday, market analysis platform Santiment released data showing that the number of positive discussions about Bitcoin on social media is gradually increasing after a sharp decline on Monday.

“On platforms like X, Reddit, Telegram, and other cryptocurrency-related forums, the community is encouraged by comments from President Trump indicating that the war with Iran could end soon, along with signs that oil prices are reversing,” Santiment said.

In another post, Santiment noted: “Periods of instability often stimulate the search for alternative assets, and the cryptocurrency market tends to react quickly thanks to its global, 24/7 activity and lack of dependence on any government or financial system.”

Geopolitical Tensions and Their Impact on Bitcoin

Tensions in the Middle East escalated last month after the U.S. and Israel conducted airstrikes targeting Iran. In response, Iran retaliated with actions against several neighboring countries. However, on Monday, President Donald Trump signaled that the conflict might be ending when he stated, “I think the war is almost over.” Nevertheless, on Truth Social, he also warned that if Iran takes any action to disrupt oil supplies, the U.S. will increase military pressure on the country.

Bitcoin Shows Strength Amid Geopolitical Shocks

Ryan McMillin, Investment Director at Australian crypto asset management firm Merkle Tree Capital, shared that besides geopolitical factors, many other elements are contributing to the positive market sentiment.

According to McMillin, Bitcoin’s strong resilience to geopolitical shocks, along with increasing interest from major organizations like Strategy — which bought nearly 18,000 Bitcoin last week and is continuing to make additional purchases this week — has been a key driver for Bitcoin’s recovery. Additionally, Bitcoin maintaining its price above its lowest levels in February is also a positive sign.

“Bitcoin has demonstrated superior strength in challenging conditions. Inflation is trending downward, oil price risks are easing, and a new Federal Reserve Chair will take office in a few months. The Clarity Act is gradually being implemented — all these factors are creating favorable winds,” McMillin said.

He also emphasized: “Short positions face high risks as selling liquidity could tighten, pushing Bitcoin close to $80,000 before a clear trend reversal occurs. Bears have dominated for many months, but now they may face their first challenge in this cycle.”

Market Sentiment: From Fear to Greed

Although social media discussions about Bitcoin are turning more positive, the Crypto Fear & Greed Index — a tool measuring overall market sentiment in the crypto space — remains at 15, indicating the market is still in “extreme fear” mode.

This index is based on multiple factors, including Bitcoin price volatility, market dominance, trading momentum, social media data, and Google search trends.

The Crypto Fear & Greed Index in the cryptocurrency market returned to extreme fear levels on Wednesday | Source: alternative.me Meanwhile, Google Trends data for the keyword “Bitcoin” reached 71 on Wednesday, down from the peak of 100 on March 5.

“FOMO (fear of missing out) tends to reinforce itself in the crypto market. When sentiment shifts from fear to greed, it attracts more new investors, increases trading volume, and drives short-term growth, as seen in previous cycles,” McMillin explained.

He added: “After five months of continuous decline from the all-time high of $126,000 in October, Bitcoin is now in oversold territory, creating favorable conditions for at least one technical rebound.”