Takeaways from the conference:
-
Analysts at Bitwise believe that the selling pressure is likely to have peaked and that dips in prices may represent good opportunities for buyers.
-
Even as exchange deposits increase, smaller BTC holders continue to accumulate.
Bitcoin’s recent weakness (BTCGoogle’s interest in the asset has dropped to its lowest level for several months. Recent sentiment measurements reflected conditions that are typically seen in bearish phases when caution rules the crypto market.
Cointelegraph reported Crypto Fear and Greed Index fell to an “Fear” The level is 24, the lowest it has been in over a year. It’s also down from last week. “Greed” Reading of 71. The decline is similar to the sentiment seen in April when Bitcoin briefly dropped below $74,000. It also parallels past cycles of market fatigue from 2018 and 2022.
Bitcoin can be a great opportunity for panic: Bitwise
Bitwise’s analysts are convinced that despite the dramatic drop in sentiment, the current situation favors growth, and not retreat. Director and head of research André Dragosch, senior research associate Max Shannon, and research analyst Ayush Tripathi said that the recent correction was driven largely by external factors, including renewed US–China trade tensions that triggered broad-based risk aversion across global markets.
Bitwise’s weekly crypto market compass report It was noted that Bitcoin’s perpetual-futures open interest plummeted by $11 Billion. “the strongest decline on record.”
Dragosch stated that the forced liquidation has occurred now “meaningfully exhausted selling pressure,” Setting the scene for a counter-cyclical buying window, similar to Yen carry trade unwind In August 2024,
“Our in-house Cryptoasset Sentiment Index has dropped to its lowest level since that period,” The analyst added, “Historically, such extremes have marked favorable entry points ahead of seasonal strength in Q4.”
Related: Bitcoin retail interest is in ‘bear market’ as crypto sentiment flips to fear
Bitcoins are being held by smaller holders amid pressure from miners
The data from Onchain supports this. Glassnode reported The accumulation of smaller Bitcoin owners, between 1 BTC and 1000 BTC in recent days has offset the reduced purchasing by larger holders. It is clear that the retail and mid-tier investor community has a renewed sense of confidence despite market volatility.
Other indicators, however, paint a much more complicated picture. CryptoQuant data showed The largest amount of BTC has arrived at exchanges since July, when miners deposited 51,000 BTC. This activity is often followed by sell-side pressure as miners move their holdings into exchanges in order to hedge or liquidate positions.
At the same time, data may also indicate that holders of long-term positions are exiting. indicated In the last 30 days alone, 265,715 BTC have been sold. This is the highest monthly volume since January 2025.
Bitcoins’ stability at around $110,000 suggests that ETFs or institutions are absorbing any excess supply. The market’s opposing flow patterns suggest that it is moving from capitulation towards reaccumulation. Bitwise analyst see this setup as a basis for a strong Q4.
Related: Bitcoin Coinbase Premium keeps BTC above $110K: Will this level hold?
This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
