Bitcoin has seen a rapid shift in its social sentiment just after a massive Coldcard scam attack that targeted Bitcoin holders in a $70 million exploit, causing investors to grow wary.
The security breach, which involved a widely trusted hardware wallet, Coldcard, caused Bitcoin holders to lose millions in funds while sparking major safety concerns among investors.
Bitcoin bears in vogue
Santiment has provided data revealing that bullish sentiment surrounding Bitcoin has dropped to its lowest level since the firm began tracking conversations across X, Reddit, Telegram, and other social media platforms.
According to the data, every bullish comment about Bitcoin receives up to 1.72 bearish comments, leaving the bullish-to-bearish ratio at just 0.58.
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As such, Bitcoin's bullish sentiment has fallen to its lowest level ever within a 24-hour period.
While drawdowns in the social metric are often caused by market fear driven by a failing exchange or a market crash, that is not the case this time.
The recent bearish sentiment is driven by concerns over self-custody, especially because it has long been viewed as the safest option for investors to protect their holdings, hence the reason behind such a rapid fall.
Bitcoin hardware wallets stir concerns
Santiment further explained that the current wave of negative sentiment seen after the Coldcard attack is stronger than the fear seen during major geopolitical tensions earlier this year.
It added that the fear caused by the attack also exceeds the social panic recorded during several of crypto's biggest historical events. While the reading is based on a single day's data, it represents the most bearish social sentiment the analytics firm has ever recorded for Bitcoin.
While the fraudulent attack has affected the confidence of most Bitcoin holders, it has reignited the debate over whether even hardware wallets can be fully trusted.