How do social media and public sentiment shape Bitcoin's value?

Hello, that's a great question. Actually, it's not that complicated; let me give you a few analogies to make it clear.

You can imagine the Bitcoin market as a giant, highly emotionally sensitive "popularity poll." If something is popular, people are willing to "vote" for it with their money, and its "ticket price" (i.e., Bitcoin's price) goes up. Conversely, if popularity drops, people sell off, and the price falls. Social media and public opinion act as the biggest, loudest megaphone next to this poll.

Specifically, they primarily influence Bitcoin's value in the following ways:

1. Emotion Amplifier: Creating "FOMO" and "FUD"

This is the most crucial point. In investment circles, we often talk about two terms:

• FOMO (Fear Of Missing Out): This means "fear of missing out." When you see countless people on social media flaunting how much money they've made buying Bitcoin, and news outlets constantly report "Bitcoin hits new highs!", you start to panic, feeling that if you don't get in now, it'll be too late. This collective anxiety drives a large influx of new buyers into the market, demand suddenly surges, and the price naturally skyrockets. Social media is the best place to create this kind of "mass hysteria" atmosphere.

• FUD (Fear, Uncertainty, and Doubt): This refers to "fear, uncertainty, and doubt." Conversely, if a negative piece of news suddenly goes viral on social media—for example, "a certain country is banning Bitcoin entirely" or "a major exchange has been hacked"—even if the news hasn't been confirmed, panic spreads like a virus. People fear their money will become worthless, so they rush to sell. This collective stampede leads to a sharp price drop.

You see, social media acts like an emotion amplifier. Whether it's greed or fear, it can magnify these emotions hundreds or thousands of times in a very short period, directly driving the price rollercoaster.

2. The "Light-Speed" Information Spreader

In the era before social media, it might take days or even weeks for news to travel from its origin to the majority of people. Now? A single tweet or Weibo post can spread globally within minutes.

For instance, when a major company (like Tesla) announced it would accept Bitcoin payments, it was seen as significant positive news. The moment the news broke, social media was flooded, investors immediately followed suit and bought, and the price instantly showed a "big bullish candle." Conversely, bad news about tightening regulations can trigger a sell-off wave at the same speed. This velocity makes market reactions extremely swift and intense.

3. The "Conductor's Baton" Effect of Influencers and Opinion Leaders

This is even easier to understand. Imagine a figure like Elon Musk, who has hundreds of millions of followers on Twitter. If he tweets today expressing optimism about Bitcoin, or even changes his profile picture to something Bitcoin-related, countless followers will interpret this as a strong buy signal, and market sentiment will be instantly ignited.

These "influencers" or industry leaders have every word they say scrutinized by their followers, becoming the basis for many people's buying and selling decisions. Their influence is like a conductor's baton, capable of swaying market sentiment and capital flows in a short period.

4. Shaping Long-Term "Consensus"

Beyond short-term price fluctuations, social media is also gradually shaping people's long-term perception of Bitcoin.

On various forums (like Reddit), Twitter, and Weibo, a large number of Bitcoin supporters discuss its technology, philosophy, and future day in and day out. They liken Bitcoin to "digital gold," considering it the ultimate weapon against inflation; they share various stories of how Bitcoin has changed lives.

This continuous, positive public discourse gradually forms a powerful "consensus" or "narrative." More and more people begin to believe that Bitcoin is not just a speculative asset but one with long-term value. The establishment of this underlying consensus is the fundamental reason why Bitcoin's price could rise from a few cents to tens of thousands of dollars. If everyone believed it was worthless, it truly would be.

In summary:

For something like Bitcoin, which lacks national credit endorsement and fixed asset backing, people's "confidence" and "consensus" are its value itself.

Social media and public opinion are precisely the primary tools for shaping, disseminating, and amplifying this "confidence" and "consensus." They can push prices to the heavens overnight (FOMO) and plunge them into hell in an instant (FUD). Therefore, if you're following Bitcoin, you shouldn't just look at candlestick charts; you also need to learn to listen to the "buzz" on social media. But at the same time, be cautious, because that buzz is mixed with too much noise and emotion.