Santiment: Retail Sentiment Starts the Year Positively, If Bitcoin Rapidly Rises to $92,000, It May Trigger FOMO

Odaily News According to analysts from the blockchain analytics platform Santiment, cryptocurrency market participants have shown strong sentiment on social media at the beginning of the year. However, they also warned that whether the market can continue to rise 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. Although other crypto sentiment indicators show fear among market participants, Quinlivan stated that Santiment's social media data points in the opposite direction.

"The current sentiment is very positive," he said. "Usually, this is somewhat concerning, but this time it might just be a normal rebound after returning from the holidays." Quinlivan mentioned he is not overly worried about "a large amount of FOMO sentiment emerging," but added that if Bitcoin quickly climbs to $92,000, such sentiment could flood the market. When market excitement becomes too high, the cryptocurrency market tends to move in the opposite direction of what most people expect.

Quinlivan pointed out that a rapid rise in Bitcoin's price to that level would reveal "the true reaction of retail investors": "If they start pouring in funds because 'Bitcoin is rising,' that would be a negative signal." Although January has historically performed strongly, the crypto market still faces signals of fear. Retail euphoria in the cryptocurrency market often appears near all-time highs or cycle peaks, and historical data shows that the market often subsequently experiences a decline.