Santiment: Retail investor sentiment has been positive since the start of the year; a rapid rise in Bitcoin to $92,000 could trigger FOMO.

According to ME News, on January 3rd (UTC+8), analysts at blockchain analytics platform Santiment pointed out that cryptocurrency market participants' sentiment on social media has been strong at the start of the year, but also warned that whether the market can rise further depends on whether retail investors can remain rational. "We need retail investors to maintain a certain level of caution, a certain level of pessimism, and a certain level of impatience," said Santiment analyst Brian Quinlivan in a YouTube video released on Saturday. While other crypto sentiment indicators show fear among market participants, Quinlivan said Santiment's social media data points in the opposite direction. "The current sentiment is very positive," he said. "Usually this is somewhat worrying, but this may just be a normal post-holiday rebound." Quinlivan stated that he is not overly concerned about "a large influx of FOMO," but added that such sentiment could flood the market if Bitcoin quickly climbs to $92,000. When market excitement is too high, the cryptocurrency market often moves in the opposite direction to what most people expect. Quinlivan points out that Bitcoin's rapid price increase to this level will reveal "the true reaction of retail investors": "If they start pouring money in because of 'Bitcoin's rise,' that would be a negative sign." Despite historically strong January performances, the crypto market still faces fear signals. Retail frenzies in the cryptocurrency market often occur near all-time highs or cyclical peaks, and historical data shows that the market often follows with a decline. (Source: ME)