Bitcoin's Struggle for Acceptance: Market Sentiment Remains Pessimistic

Bitcoin's struggle to gain mainstream acceptance continues, as sentiment surrounding the cryptocurrency remains negative, even on Valentine's Day. According to the GBBC Digital Finance (GDF) 'Bitcoin Love Index,' which tracks sentiment towards bitcoin using a machine algorithm that analyzes media mentions of the word 'bitcoin' from various sources, sentiment is slightly negative.

The index shows that after the collapse of crypto exchange FTX, sentiment around bitcoin fell from mainly neutral to very negative. Although sentiment rebounded over the following days, it wasn't until the end of November and beginning of December that sentiment consistently returned to neutral levels.

Since then, there has been no positive sentiment score, making it the longest negative streak in the last two years. The price of bitcoin, though still volatile, has recovered this month to nearly $20,000, similar to the price prior to the FTX collapse. However, over the entirety of 2022, the price of bitcoin lost more than 60%.

While retail investors may have been spooked by the volatility in the crypto market, institutional confidence remains firm, with some still having full belief in bitcoin. Nigel Green, CEO and founder of deVere Group, says that cryptocurrencies "still have all the pluses of being digital – speed, efficiency, and convenience – but they are fundamentally different as they run on an open, immutable blockchain."

Despite the negativity, crypto firms continue to attract celebrity ambassadors, such as Jamaican sprinter Usain Bolt, who joined Gamdom as a brand ambassador earlier today. It remains to be seen whether sentiment towards bitcoin will improve in the coming months, but for now, the love for crypto appears to be in short supply.

Thursday, 23 May 2024