- Bitcoin dropped to $86K with the increase in negative sentiment and market fear.
- Ethereum, XRP, and SOL faced falling prices, with trading volumes climbing significantly
- Market sentiment hit lows similar to past bottoms, suggesting a possible shift in trends
The cryptocurrency sector is witnessing a rise in negative emotions, as shown by how Bitcoin dropped to $86,000, reflecting one of its greatest declines in recent months. Data from Santiment reveals extreme bearishness across Bitcoin, Ethereum, XRP, and Solana, with sentiment ratios hitting multi-month lows. Historically, when FUD (Fear, Uncertainty, and Doubt) levels reach these extremes, markets tend to approach local bottoms.
Source: X
Bitcoin’s Sentiment Ratio Dives With Price Hitting $86K
Bitcoin’s price fell by approximately 13.7% from its recent high of $99,600, marking a substantial decline that sent shockwaves through the market. Santiment’s trajectory index shows BTC’s positive-to-negative commentary ratio plummeting below 0.45, indicating that for every positive mention, there are more than double the negative comments. The sudden drop aligns with increased market capitulation, as trading volumes spiked by 21.8% over the last 24 hours, signaling panic-driven selling.
Ethereum followed closely, with its sentiment commentary ratio declining to 0.48. ETH’s price hovered around $3,140, reflecting a 9.6% drop from the previous week’s $3,472. Negative mentions for Ethereum surged by 27.3% over the past three days, with trading volumes rising to $8.9 billion, up 19.4% in the same period. The sentiment decline suggests that nearly two-thirds of market commentary surrounding Ethereum remains negative.
XRP and Solana Exhibit Peak Bearish Sentiment
XRP’s sentiment ratio hit a low of 0.42, correlating with a price decrease to $0.61 from $0.70, marking a 12.8% decline. Negative mentions increased by 30.1% week-over-week, with daily trading volumes exceeding $1.4 billion, a 24.7% spike compared to the previous week.
Solana experienced similar bearish sentiment levels, with its commentary ratio falling to 0.44. SOL’s price slipped to $96.30 from $110.60, reflecting a 13% decrease. Trading volume jumped to $1.15 billion, up 22.9% in 48 hours, as sell-offs intensified amid growing market fears.
Related: Fear and Greed Falls to Extreme with Massive Liquidation
Historical Context: Extreme Sentiment Often Signals Market Bottoms
Historically, sentiment ratios falling below 0.5 have signaled market turning points. During Bitcoin’s previous market bottom in June 2023, the sentiment ratio hovered at 0.46, similar to current readings. Additionally, XRP’s lowest sentiment ratio over the past six months was 0.41, only marginally lower than current levels.
Across the board, contrary sentiment mentions for BTC, ETH, XRP, and SOL surged by an average of 28.4% in the past week. Simultaneously, market-wide trading volumes rose by 23.6%, highlighting intensified market activity driven by fear-driven sell-offs.
Santiment’s data suggests that, while market participants remain overwhelmingly bearish, historical patterns indicate that extreme negativity often coincides with market bottoms. With sentiment indices for major assets consistently below 0.5, the current environment marks one of the most pessimistic periods in the crypto market this year.
