See More

FUD Fest: Analytics Platform Measures Record Levels of Crypto Fear and Doubt

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Fear, uncertainty and doubt in crypto is soaring.
  • The Bitcoin Fear and Greed Index is currently neutral.
  • Tether is at the center of a recent WSJ report.
  • promo

As the U.S. war on crypto ramps up, mainstream media is joining the fray as salacious headlines attacking crypto companies become the norm.

Blockchain analytics firm Santiment has measured one of its highest levels of fear, uncertainty, and doubt (FUD) over the weekend.

On March 5, the firm reported that Twitter was the source of a lot of negative sentiment.

“Some bizarrely high levels of negative crypto sentiment has appeared this weekend, particularly here on Twitter.”

Social Sentiment Slump

Santiment’s bullish vs. bearish word comparison social trends indicator showed a massive spike over the weekend.

Analysts said that the surge in bearish sentiment and FUD was predominantly from Twitter. This is unsurprising since the micro-blogging platform has become the industry’s de facto social media home.

Furthermore, notorious Twitter accounts such as “Mr. Whale” consistently spew crypto FUD to its 500,000 followers. Although this account usually targets crypto companies such as Tether and Binance, Santiment noted that there was an “unusually high” amount of negative commentary about the markets.

“It’s particularly interesting that #cryptocrash has been a key of-and-on trending hashtag on the platform, even though Bitcoin’s mild -5% pullback occurred more than three days ago.”

Last week’s $60 billion selloff was likely caused by issues facing crypto bank Silvergate. Lido and Binance have also been thrown into the crypto FUD spotlight recently. The Securities and Exchange Commission (SEC) has also been on the warpath targeting crypto companies and labeling the majority of assets as securities.

Furthermore, the Bitcoin fear and greed index, which uses sentiment as a measurement, has slipped back below 50 into neutral territory.  

Mainstream Media Crypto FUD Fest

Mainstream media is lapping up the negativity as it provides opportunities for salacious headlines.

The anti-crypto industry Wall Street Journal has been attacking stablecoin issuer Tether again. Its latest claim is that the firm faked banking documents. Tether responded to the “stale allegations” by stating that it has:

“World-class compliance programs and adhere to applicable Anti-Money Laundering, Know Your Customer, and Counter-Terrorist Financing legal requirements.”

The WSJ, owned by the traditional financial elite Dow Jones and Company, has repeatedly targeted Tether over the years. On March 5, the outlet unleashed another attack on Binance, accusing it of trying to evade U.S. authorities.

Bloomberg has also produced some of its own headline gems. On March 3, the outlet cited U.S. politicians alleging that Binance was a “hotbed of illegal activity.”

Industry executives and experts pointed out that crypto FUD is nothing new, especially during bear markets.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

profile.jpg
Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
READ FULL BIO
Sponsored
Sponsored