Santiment: "Lack of fear, further Bitcoin declines possible."
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Santiment, a cryptocurrency market sentiment analysis platform, stated in a video and report released on the 21st that it is too early to conclude that a market bottom has been formed based on social media sentiment.
Maksim Balashevich, founder of Santiment, said on YouTube on the 21st that Bitcoin (BTC) could potentially fall to around $75,000. He explained that the price was currently hovering around $88,000, a range that could lead to a correction of approximately 15% if it were to fall further.
Balashevich noted that there is still a lot of optimistic talk on social media about a short-term rebound, suggesting that this sentiment doesn't appear at a true market bottom. "The crowd isn't scared enough yet," he said, emphasizing that excessive optimism is far from signaling a bottom.
On the same day, Santiment reported that investors continued to expect a rapid rebound even after the Bank of Japan's interest rate hike. The Bank of Japan raised its base rate to 0.75 percent on the 21st, the highest level in 30 years, and similar policy changes in the past have coincided with Bitcoin corrections.
However, Balashevich added that if the price falls to that level, it could present a favorable entry point for mid- to long-term investors. Earlier on the 20th, Jurrien Timmer, head of Fidelity Global Macro Research, also mentioned the possibility of Bitcoin correcting to the $65,000 level around 26,000.
Meanwhile, some market indicators indicate that we have already entered a period of intense fear. The Cryptocurrency Fear and Greed Index has remained in the extreme fear zone since the 14th and reached 20 points as of the 21st. The Altcoin Season Index also showed that the top 100 altcoins were underperforming compared to Bitcoin, indicating a strengthening risk-averse sentiment.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
