Bitcoin’s price has struggled to stabilize in recent days, with the sentiment surrounding the asset becoming just as crucial as the price fluctuations. The cryptocurrency has slipped further into the mid-$80,000 region this week, amid a downtrend that has kept buyers on the defensive.
Recent data from on-chain analytics platform Santiment highlights a significant collapse in crowd sentiment. This profound decline in the bullish-to-bearish commentary coincides with Bitcoin’s downward movement, as retail traders react emotionally to the ongoing sell-off.
Bitcoin Sentiment Plummets to Lowest Level Since 2023
Santiment data indicates that Bitcoin’s sentiment across major social platforms has reached its lowest point since December 11, 2023. The ratio of bullish to bearish comments on platforms like X, Reddit, Telegram, and others has deteriorated rapidly, displaying a steep decline that aligns with Bitcoin’s recent price dip.
As per the on-chain analytics platform, retail investors are capitulating at a pace not observed in two years, with the Bitcoin market now dominated by sentiment characterized by fear and pessimism. The accompanying chart captures a notable downward swing, revealing that positive commentary has been eclipsed by a wave of bearish opinions as the price correction deepens.
Panic selling is evident in the sharp downturn visible on both the price chart and sentiment indicators. The capitulation is unfolding across multiple crypto exchanges, with many traders abandoning bullish positions following Bitcoin’s loss of crucial psychological support around $90,000.
According to Santiment, 20,000 Bitcoin (BTC), worth nearly $2 billion, have been sent to exchanges in the past week.
More Losses Ahead?
The future trajectory of Bitcoin remains a topic of debate among market participants. Analysts are scrutinizing the possibility of further downside due to ongoing outflows from Spot Bitcoin ETFs and lackluster whale activity in the Bitcoin futures market. This viewpoint is supported by data from CryptoQuant that labels the current market environment as “A Market Without Whales,” where retail investors are increasingly doing the heavy lifting, with signs of fatigue evident.
Conversely, some analysts suggest that the current dip may present a pivotal moment, indicating that Bitcoin’s four-year cycle is concluding and that a new cycle may soon be on the horizon.
As of now, Bitcoin is trading at $85,502, reflecting a modest increase of 1.3% in the past 24 hours.
Featured image from The Financial Commission, chart from TradingView
