Bitcoin Surges 3% to $108,635 as Bullish Sentiment Hits Seven-Month High

Bitcoin's price has surged, reaching $109,744 as of June 11, marking a significant increase from the previous week. This upward trend is attributed to several factors, including easing geopolitical tensions and a shift in investor behavior towards holding onto their Bitcoin rather than trading it frequently. This shift, known as the HODL mode, has contributed to the bullish sentiment surrounding Bitcoin.

Bitcoin’s several breakouts past $110,000 this week have pushed bullish market sentiment to a seven-month high, which was last seen during the U.S. presidential election win. As of June 11, there are 2.12 positive Bitcoin comments for every negative comment on social media. This is the highest ratio since Nov. 6, the day after the U.S. presidential election, when Bitcoin surpassed $70,000 for the first time. Retail interest in Bitcoin has been lagging this cycle, with Bitcoin’s price gains attributed to institutional and nation-state adoption. A positive shift in retail sentiment could be an additional boon for Bitcoin.

Data from the Crypto Fear & Greed Index is also bullish, scoring the current market sentiment a 71 out of 100, in the “greed” zone. However, the current score is far off the 94 out of 100 reached on Nov. 22, a four-year high that came on the back of the U.S. presidential election win and Bitcoin skyrocketing from a monthly low of $67,700 to $99,250. The rise comes as Bitcoin has clipped $110,000 several times over the last week, with Santiment noting that “retail has gotten bullish.”

Bitcoin is currently at $108,635, down 3% from its all-time high of $112,000 set on May 22. The surge in Bitcoin's price has also been accompanied by a notable increase in social sentiment, with traders and investors closely monitoring the cryptocurrency's performance. The price is now flirting with its previous record high, with many anticipating a breakout above this level. The potential for a major short squeeze has also been discussed, with some analysts suggesting that a 10% pump could liquidate a significant amount of short positions, further driving up the price.

The bullish sentiment surrounding Bitcoin is not limited to its price performance. The cryptocurrency's market capitalization has also been on the rise, with some analysts predicting that it could reach new all-time highs in the coming months. This optimism is fueled by the increasing adoption of Bitcoin as a store of value and a hedge against inflation, as well as its potential use in decentralized finance (DeFi) applications. However, it is important to note that the cryptocurrency market is known for its volatility, and Bitcoin's price could still experience significant fluctuations in the near future. Analysts have warned that while the current trend is bullish, confirmation of a sustained rally is still needed. Despite this, the overall sentiment surrounding Bitcoin remains positive, with many investors and traders optimistic about its future prospects.