Bitcoin, the leading cryptocurrency, recovered after falling as low as $80,500 on Sunday, climbing back above $82,000 at the start of the new week. Thus, BTC has recouped some of its losses following last week’s sharp drop after the release of CPI data.
The sharp declines in Bitcoin and the cryptocurrency market, as well as in AI and technology stocks last week, have raised fears of a new ‘Black Monday’ similar to the one 39 years ago.
According to Santiment data, concerns about selling pressure are also rising in the cryptocurrency market ahead of the anniversary of the 1987 “Black Monday” crash. 39 years ago, on October 19th, US stock markets experienced one of the biggest declines in history.
Despite the rise in fear on social media, Bitcoin managed to stay above the $82,000 level.
Black Monday Posts Rise!
According to the cryptocurrency analysis platform Santiment, discussions have intensified on social media about the possibility of another sharp decline ahead of the 39th anniversary of the historic US stock market crash of October 19, 1987.
Santiment data revealed that social media posts containing the phrase “Black Monday” rose to 176 on October 18th. Given that the daily average for the previous 60 days was below two, the magnitude of this recent surge is noteworthy.
The number of posts related to the market crash also reached 105 on the same day. However, this figure did not exceed the range observed in the last 90 days.
Bitcoin Rises Despite Fears!
Despite growing anxiety on social media, Bitcoin closed at around $82,000. This represents a gain of approximately 1 percent compared to the previous day.
Bitcoin’s price action has shown that negative expectations among market participants don’t always translate directly into selling pressure. However, the fact that the price has remained at this level doesn’t mean the risk of a potential correction has disappeared.
Santiment also recalled that a similar surge in “Black Monday” posts occurred on September 14th, and Bitcoin fell by approximately 3 percent the following day.
However, the company noted that price movements during the fall period were inconsistent, and that interpreting fear on social media alone as a harbinger of a new decline could be misleading.
*This is not investment advice.
