Crypto retail investors are trying to 'meta-analyze' crypto crash: Santiment

Retail investors are scrutinizing the crypto marketplace for signs that it whitethorn person bottomed retired to gauge erstwhile to bargain much crypto assets, according to crypto sentiment level Santiment.

“Retail traders are trying to meta-analyze the market, looking for signs of others quitting to clip their ain entries, which often happens adjacent bottoms,” Santiment said successful a study connected Saturday.

Santiment has linked this to the connection “capitulation,” which has go a top-trending crypto word connected societal media, according to the platform’s data.

Source: CryptoQuant

The word describes investors selling their holdings retired of fearfulness that the marketplace won’t recover, a script that analysts typically show erstwhile assessing whether the marketplace has reached a bottom.

“Capitulation” whitethorn person already happened, says Santiment

“If everyone is waiting for ‘capitulation,’ the bottommost mightiness person already happened portion they were waiting for a clearer sign,” Santiment said.

Meanwhile, Google Trends information shows searches for “crypto capitulation” rising from a people of 11 to 58 betwixt the weeks ending Feb. 1 and Feb. 8.

The hunt measurement for “crypto capitulation” surged implicit the past week. Source: Google Trends

Crypto investors are usually cautious astir calling a marketplace bottommost excessively soon. History shows prices tin support falling adjacent erstwhile astir radical deliberation the worst is over.

Market expert Caleb Franzen said successful an X station connected Saturday that portion capitulation is the “word of the week,” galore investors don’t recognize that “bear markets typically acquisition aggregate capitulation events.”

It comes arsenic Bitcoin’s (BTC) terms dropped arsenic debased arsenic $60,000 connected Thursday, a level it hasn’t seen since October 2024, amid its ongoing downtrend.

Some analysts are skeptical of the “cycle bottom”

Crypto expert Ted said successful an X station connected Friday that “yesterday's dump looks similar capitulation, but it's not the rhythm bottom.”

Echoing a akin sentiment, crypto expert CryptoGoos said, “We haven't seen existent Bitcoin capitulation truthful far.”

Related: Over 23% of traders present expect involvement complaint chopped astatine adjacent FOMC meeting

Over the past 30 days, Bitcoin has fallen 24.27%, trading astatine $68,970 arsenic of publication, according to CoinMarketCap.

The Crypto Fear & Greed Index, which measures wide crypto marketplace sentiment, fell further into the “Extreme Fear” territory connected Sunday, with a people of 7, signaling utmost caution among investors.

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