As Bitcoin reached new highs this week, sentiment platform Santiment found that almost half of all crypto-related conversations on social media were about it. This dominance might indicate a local peak and a possible short-term downturn.

Santiment analyst Brian Quinlivan stated in a report on Wednesday that there was an equally unprecedented increase in social dominance. As Bitcoin’s market value went beyond $123.1K for the first time in its years of existence.

Analysts split on rising social dominance effect

At the height of Bitcoin’s market value, 43.06% of all crypto talks were around the coin, according to Quinlivan. “The sudden spike was indicative of many retail traders FOMO’ing in,” Quinlivan added. Contradicting the opinion of some industry insiders who think retail investors have not yet joined the market.

Bitcoin has reached fresh all-time highs, but retail investors are “almost nowhere to be found,” according to Bitwise director of research André Dragosch, who made the statement on July 11.

While an uptick in favorable sentiment could seem promising, Quinlivan cautioned that rises in Bitcoin mentions on social media are often accompanied by price drops. This follows Quinlivan’s previous warning that Bitcoin’s price dropped on June 11 and July 7. Following very similar surges in trader excitement.

Nonetheless, there are those who believe the upward trend will certainly continue. According to a CryptoQuant analyst’s Wednesday analysis, we have not yet reached a peak. Since the Bitcoin peak signal, a statistic that appears when the market is overheated, is not present.

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