Bitcoin Cash (BCH) has recently experienced a notable decline of 6.7%, which analytics firm Santiment attributes to the heightened bullish sentiment on social media. This trend was observed after BCH reached a high of $650, a price last seen 17 months ago.

Santiment's analysis utilizes a Positive/Negative Sentiment indicator, which differentiates between bullish and bearish social media posts using a machine-learning model. The sentiment fell drastically to a ratio of 0.13 bearish to bullish at the beginning of the month, signaling a potential buy. However, the sentiment quickly swung to bullish at 2.3, preceding the recent price pullback.

Historically, a spike in either bullish or bearish sentiments often indicates market movements contrary to popular opinions, suggesting a need for monitoring future shifts. While BCH's current price is around $605, centralized exchanges have seen an influx of $1.33 billion in USDC stablecoin deposits. According to CryptoQuant analyst Maartunn, such stablecoin inflows historically suggest major market volatility ahead.