Bitcoin’s Recent Rally Above $50,000 Coincided With A Huge Improvement In Sentiment

Bitcoin prices broke through $50,000 this afternoon, reaching their loftiest level in more than two years as the digital currency benefited from very significant improvements in trader sentiment.

The crytocurrency’s price reached an intraday high of $50,255.67 this afternoon, CoinMarketCap figures show.

Within the last year, the digital asset has smashed through the $30,000, $40,000 and now $50,000 levels, after falling below $20,000 in 2022.

While bitcoin prices have enjoyed compelling gains over the last several months, long-term sentiment measures have shown even more improvement, according to figures provided by cryptocurrency analytics provider The Tie.

The digital currency’s long-term sentiment recently reached a value of 61.38, its highest since 2022, data supplied by The Tie show.

The aforementioned measure is calculated by analyzing Twitter/X conversations over the last 50 days to see how positive or negative they are and then comparing that result to what happened over the last 200 days.

Any score that exceeds 50 indicates that the aforementioned conversations have been more positive over the last 50 days as opposed to the prior 200 days, and a score below that point indicates the opposite.

The chart below shows how this long-term sentiment measure has changed over the last several years:

Upon reaching its recent high point, long-term sentiment had increased nearly 300% after falling to as little as 15.44 in September.

The chart below shows how the aforementioned indicator declined to that value last year:

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.