A surge in social media posts is driving predictions that Bitcoin's price will exceed $90,000, potentially turning its year-to-date return positive. However, the market's response remains uncertain. Analytics firm Santiment analyzed thousands of social media posts and found a significant bias towards a price increase above $90,000, with mentions of lower price ranges being dismissed as fear, uncertainty, and doubt. The crowd's expectations of a continued recovery from the February low of around $60,000 are fueled by the return of exchange-traded fund flows and Bitcoin's resilience in the face of global conflicts and DeFi hacks.
Despite this, Santiment warns that such bullishness can be a contrarian indicator, suggesting a potential bearish performance. This phenomenon is not unique to the crypto market, as traditional markets also use sentiment gauges, such as the AAII Investor Sentiment Survey and the CNN Fear & Greed Index, to track retail investor sentiment. Interestingly, Bitcoin's recovery rally has already shown signs of stalling, with prices pulling back to $77,000 from highs above $79,000. Whether this is a temporary pause or the start of a broader reversal remains to be seen.