According to cryptocurrency sentiment platform Santiment, retail investors are analyzing the cryptocurrency market for signs that it may have bottomed to assess when to buy more crypto assets.
“Retail traders try to meta-analyze the market, looking for signs that others are abandoning their own entries, which often happens near lows” – Santiment he said in Saturday’s report.
Santiment linked this to the word “surrender,” which has become the most popular crypto term on social media, according to the platform’s data.
This term describes investors selling their shares out of fear that the market will not recover – a scenario that analysts typically monitor when assessing whether the market has bottomed.
“Capitulation” may have already occurred, Santiment says
“If everyone is waiting for ‘capitulation,’ the bottom may have already hit while they were waiting for a clearer sign,” Santiment said.
Meanwhile, Google Trends data can be seen Searches for “cryptocapitulation” increased from 11 to 58 in the weeks ending February 1 and February 8.
Cryptocurrency investors are usually wary of hitting market bottoms too quickly. History shows that prices can continue to fall even when most people believe the worst is over.
Market analyst Caleb Franzen he said in a Saturday post on X that stated that while capitulation is the “word of the week,” many investors don’t understand that “bear markets typically see a lot of capitulations.”
This comes as the price of Bitcoin (BTC) fell to $60,000 on Thursday, a level not seen since October 2024, amid a continued downtrend.
Some analysts are skeptical about the “bottom of the cycle”
Crypto Analyst Ted he said on Friday in a post on X that “yesterday’s outburst looks like capitulation, but it is not the bottom of the cycle.”
Echoing a similar sentiment, cryptocurrency analyst CryptoGoos he said“We have not seen a true capitulation of Bitcoin so far.”
Related: More than 23% of traders now expect an interest rate cut at the next FOMC meeting
Over the past 30 days, the price of Bitcoin has dropped by 24.27%, reaching a price of $68,970 at the time of publication, According to to CoinMarketCap.
Crypto fear and greed Indexwhich measures overall cryptocurrency market sentiment, fell further into “extreme fear” territory on Sunday with a score of 7, signaling extreme caution among investors.
Warehouse: The “biggest catalyst for a Bitcoin bull run” would be the liquidation of Saylor: founder of Santiment
