Bitcoin's bullish sentiment has plummeted to its lowest level in over two years despite prices remaining above $60,000. This drop follows a peak at $73,737 and a subsequent pullback.
Market Sentiment Decline
According to Santiment, the Weighted Sentiment Index turned deeply negative for the first time since September 2022. While prices hold steady, discontent in the crypto community persists.
ETF-Driven Momentum Wanes
Earlier this month, Bitcoin's historic rally was largely fueled by substantial inflows into US spot Bitcoin ETFs. However, investors have started locking in gains, slowing down momentum.
On-Chain Cautionary Signals
Glassnode data indicates a decline in active Bitcoin addresses and transaction volume, often preluding market corrections. Despite this, some see the market as structurally sound.
While Bitcoin continues to trade above $60,000, the community's sentiment has turned more cautious. Investor profit-taking, slowing ETF inflows, and cautious on-chain signals have led to a notable dip in sentiment. How the situation unfolds remains to be seen.
