Santiment: Retail FUD Sentiment Enters Extreme Zone, Market May See a Dead Cat Bounce

BlockBeats News, February 2nd, Cryptocurrency market research firm Santiment posted on social media that since January 28th, Bitcoin has dropped by 16%, and social media has been shrouded in FUD (Fear, Uncertainty, and Doubt) sentiment. After falling to a low of $74,600, BTC has rebounded to $78,300 due to retail investors' panic selling. This once again proves that market trends often go against the mainstream narrative.

Negative comments about crypto assets continue to emerge. Social data shows that the current retail sentiment has been more pessimistic than any period since the crash on November 21st last year. In most cases, after experiencing such a significant negative sentiment shock, the market usually sees a technical rebound. So far, this rebound has encouragingly shown a similar trend to the previous two FUD events.