Analysis: Bitcoin Fear Rises, But Buying May Return After Selling Pressure Subsides

Odaily News According to on-chain data analysis platform Santiment, the current proportion of panic discussions about Bitcoin on social media has risen to its highest level since 2026, while market sentiment indicators have fallen to their lowest point since last November, with the overall atmosphere shifting from caution to clear panic. The overall market is currently in a de-risking phase, with stocks and precious metals also experiencing pullbacks after previous gains. Cross-market liquidity contraction and cooling leveraged funds may continue to affect the crypto market's trajectory. However, a sharp deterioration in sentiment often approaches a phase of "capitulation selling." When retail investors exit under pressure, long-term capital typically chooses to accumulate at low levels. If the Bitcoin price gradually stabilizes, the current pessimistic sentiment may quickly reverse and drive subsequent buying to return. Analysis points out that if macro market volatility persists, or if Bitcoin fails to reclaim key price levels watched by traders, fear sentiment could still last for several days, and short-term price action may remain volatile. (CoinDesk)