Maksim Balashevich, CEO of Santiment, warns that the crypto market has not reached its bottom as optimism persists despite Bitcoin’s recent decline, suggesting a retest of $74k lows.
Market sentiment plays a critical role, with traders unworried about capitulation, potentially delaying recovery as Bitcoin, Ethereum, and altcoin prices remain volatile.
Santiment CEO Predicts Lack of Market Fear
Maksim Balashevich, CEO of Santiment, predicts the crypto market “isn’t scared enough” to reach a true bottom. Social media analysis persistently shows surprising optimism amid weakened Bitcoin, contrary to the typical panic-driven market bottom scenarios often observed.
Santiment, a crypto sentiment analysis platform, highlighted the potential retest of Bitcoin’s $74k lows to induce market capitulation. The current market discussion remains centered around rate cuts, lacking genuine panic indicators, as seen in previous market bottoms.
Bitcoin and Ethereum Face Price Drop Pressures
Financial observers note consistent price drops, with Bitcoin and Ethereum down nearly 5% and 9% respectively, over a week. Historical analysis suggests a persistent necessity for greater fear to stimulate a potential recovery in asset prices.
Santiment metrics reveal shrinking crypto market cap by 6%, paired with a 2% rise in trading volume, signaling heightened selling pressure. Historical precedents align with today’s data, which show declining utility and whale/shark holdings as indicators of long-term downward trends.
Past Market Cycles Show Negative Sentiment Triggers Recovery
Historical cycles indicate market bottoms occur amid maximum pessimism, not broad optimism. Past events, like Bitcoin’s fall below significant levels, underline the significance of negative sentiment preceding recovery, suggesting current conditions may precede further declines.
According to Santiment’s insights, current market corrections are typical when panic remains absent. With whale/shark accumulations down and exchange reserves declining, the long-term bearish trends continue to loom over suppressed market activity. “The Crowd Isn’t Scared Enough for a Bottom: Expert analysis from Maksim suggests the market has not yet seen true capitulation,” shared Maksim Balashevich, CEO of Santiment.
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