Twitter is sold on Bitcoin – What now?
Bitcoin’s activity on Twitter is edging closer to its 2017 levels, based on data from Arcane Research. In fact, the 7-day average of tweets mentioning Bitcoin is back at its December 2017 high, with the number of Twitter users mentioning Bitcoin already surpassing its old peak, based on data from Arcane Research’s chart on Bitcoin tweet Activity.
Despite the temporary free fall in price, the rise in activity on Twitter underlines a positive sentiment among retail traders. In fact, the last time this surge was noted was back in 2017.
It should be highlighted, however, that as far as Google Trends is concerned, the levels for Bitcoin are still way below the levels seen back in December 2017.
The surge in positive sentiment on Twitter was shared by PayPal as well. On PayPal, the volume doubled to $240 million in a single day. While the trade volume on PayPal started off at $100 million in December 2020, it is now closing in on $250 million as the demand for Bitcoin is increasing.
Not just institutional demand, but retail traders are generating higher demand on spot exchanges too. This surge in the volume of tweets and trade volume on PayPal is in sharp contrast to what’s happening on derivatives exchanges. On derivatives exchanges, traders have been experiencing a drop in momentum and volatility lately.
In fact, a total of $410 million in $BTC long positions in Futures contracts were liquidated on leading exchange Binance. This marked the largest daily value of liquidations to date. This mass liquidation event may have had a direct and negative impact on derivatives traders’ BTC sentiment.
With increasing active supply, Bitcoin activity on Twitter is expected to increase further if the price rallies or suffers further corrections. Since the current Bitcoin supply is more active than it has been in the past 3 years, especially when compared to the Bitcoin supply of 2017, a positive sign for new entrants can be noted.
Retail traders on exchanges may see this as the right vantage point, one that sets a lowered barrier of entry to the cryptocurrency market. Though Bitcoin is trading above $33,000 now, relative to this phase of the market cycle and its recent ATH, this is a dip. Trading at this price may drive Bitcoin’s demand higher than the current level on spot exchanges.