Bitcoin‘s price dropped approximately 10% on January 3rd following panic selling triggered by speculative comments suggesting that the SEC might reject ongoing ETF applications. The sentiment index analysis sheds light on the strong expectations among crypto investors following the sell-off.
The speculative statement linked to the sudden Bitcoin sell-off was issued by digital asset management firm Matrixport, indicating possible SEC rejections of ETF applications. The SEC’s decision is expected on January 10th, but rumors already caused panic among BTC investors, leading to the liquidation of $165 million in BTC LONG positions.
Despite the panic, a key on-chain metric suggests that most investors have moved past the rumors. Santiment’s weighted sentiment chart, which compares the number of positive comments about an asset to negative ones, indicates a positive shift in sentiment.
The latest graph shows BTC’s weighted sentiment (yellow trend line) rising to positive values within the last 24 hours. As of December 31st, the Bitcoin sentiment was at -0.91 but has since climbed to 2.22 by January 4th, indicating that positive comments doubled the negative ones.
Amidst discussions surrounding the potential SEC decision on a spot Bitcoin ETF, the market sentiment appears dominantly positive. This optimism has contributed to a 7% recovery in Bitcoin’s price from its recent low of $40,750, surpassing the $44,000 mark again, with BTC trading at $44,400 at the time of writing.