According to new data from Santiment, retail traders are beginning to express doubts about Bitcoin's short-term future. Investor sentiment has shifted to levels not seen since April.
Trader Sentiment Shift
Santiment's Marketing Director, Brian Quinlivan, revealed that social media sentiment has sharply shifted, reflecting growing impatience and uncertainty among retail investors.
"Crypto is in a bit of a lull, and traders are showing signs of impatience and bearish sentiment," Quinlivan said. He also noted that Santiment's analysis shows just 1.03 bullish comments for every 1 bearish one—the lowest ratio since April 6.
Fear & Greed Index Moves to Neutral
Echoing the growing caution in the market, the widely followed Fear & Greed Index has also declined. As of Friday, the index dropped to a 'Neutral' reading of 54, down from a 'Greed' score of 61 recorded between June 9 and 15. The previous month had seen even stronger confidence with an average index value of 70, firmly in the 'Greed' zone.
The Fear & Greed Index compiles data from various sources, including Google Trends, to evaluate the emotional state of investors. The recent dip suggests traders are reassessing their positions.
Actions of Large Investors
While retail sentiment appears shaky, large Bitcoin holders—often referred to as whales—seem to be taking the opposite approach. Quinlivan noted that in the last ten days, 231 new wallets holding at least 10 BTC have emerged, contrasted with more than 37,000 wallets holding less than 10 BTC that have reduced or exited their positions.
'When large wallets accumulate as retail loses confidence, this is historically the right combination for bullish momentum to return to crypto markets,' Quinlivan explained.
Current market trends are showing mixed signals. While retail traders are becoming increasingly pessimistic, large players continue to accumulate Bitcoin, which may lead to changes in trend in the future.
