The general variety of crypto market individuals calling for Bitcoin to enter new all-time excessive territory has tapered off, which crypto sentiment platform Santiment factors out is a constructive sign.
“Requires Bitcoin to hit $150k to $200k, and even $50k to $100k, are drying up,” Santiment stated in a report on Friday.
“This discount in FOMO and ‘Lambo’ memes is definitely a wholesome market indicator. It reveals that retail optimism is fading,” Santiment added.
Bitcoin sentiment bumps as much as ‘impartial’
Whereas distinguished Bitcoin (BTC) advocates equivalent to BitMEX co-founder Arthur Hayes and BitMine chair Tom Lee had been brazenly calling for Bitcoin to succeed in as excessive as $250,000 throughout 2025, the asset’s worth ended up reaching $126,100 in October, earlier than coming into a downtrend that finally led to ending the yr decrease than the place it began.
The downtrend continued into the brand new yr, with Bitcoin dropping to close $60,000 on Feb. 6, however has since edged as much as $67,847 on the time of publication, based on CoinMarketCap.
Santiment stated that the sentiment round Bitcoin, measured by the ratio of bullish to bearish social media feedback, has recovered from “excessive bearishness” to “impartial territory,” which can make it tougher for market individuals to make buying and selling selections.
“Higher to keep away from buying and selling in these situations or at the least low cost the importance of sentiment metrics in your evaluation,” Santiment stated.
In the meantime, different indicators recommend that crypto traders are nonetheless fearful.
The Crypto Concern & Greed Index, which measures general crypto market sentiment, stayed in “Excessive Concern” territory on Saturday, posting a rating of 8, suggesting traders are extraordinarily cautious.
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Nevertheless, Santiment stated the general exercise on the Bitcoin community is “flashing warning indicators,” explaining that transaction quantity, lively addresses, and community development are all “steadily declining.”
“These utility indicators recommend the community is getting used much less incessantly. Whereas not instantly bearish, this dormancy implies merchants are sitting on their palms,” Santiment stated, arguing that market enlargement would present rising consumer participation.
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