Recent spikes in ‘Fear, Uncertainty, and Doubt’ (FUD) signals among Bitcoin traders may hint at an impending market rebound. Santiment, a prominent on-chain analytics platform, reported a surge in this sentiment, potentially indicating a bottom forming for the cryptocurrency. 104,000 BTC have been sold by long-term holders recently. Ethereum also suffers from extreme FUD and bearish sentiment. Santiment’s founder, Maksim Balashevich, noted that increased FUD often precedes local market bottoms. Historical data suggests Bitcoin tends to experience price rebounds after periods of heightened fear.
The analysis highlights a break in the correlation between Bitcoin prices and equities. This divergence might be attributed to the perception that Bitcoin is undervalued. While long-term holders are selling off significant amounts, this could be a temporary trend as potential accumulation begins again.
Several factors may contribute to these fluctuations. The recent change in interest rates by the Federal Reserve, coupled with speculation on spot ETF inflows, have both contributed to market uncertainty.
Historical trends indicate that fear-induced dips often lead to rebounds. Breaking the correlation between Bitcoin and equities is another positive sign. These patterns suggest a potential market rebound is on the horizon.