Summary
- Santiment said negative investor sentiment toward Bitcoin (BTC) has reached its highest level so far this year.
- Santiment explained that in past cases, after negative sentiment became extremely widespread, a recurring pattern has been institutional investors stepping in to buy.
- Santiment added that as traditional asset markets such as equities, gold and silver undergo a correction, the crypto (cryptocurrency) market is also being affected, and volatility could persist in the near term.
Negative investor sentiment toward Bitcoin (BTC) has risen to the highest level so far this year.
On the 29th (local time), on-chain analytics firm Santiment, citing its own data, said that "as Bitcoin’s price fell to its lowest level since Nov. 21 last year, mentions related to fear, uncertainty and doubt (FUD) surged among investors."
Santiment explained, "Historical patterns show that when negative commentary becomes this extreme, it often suggests retail-led capitulation is nearing its final stage," adding that "a recurring pattern has been that institutional investors step in to buy at relatively lower price levels afterward."
However, Santiment added that "traditional asset markets such as equities, gold and silver are also undergoing a correction, which is weighing on the crypto market as well," and that "volatility could persist in the near term."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
