BTC, ETH, and XRP Face Extreme Fear, But Whales Are Sending Mixed Signals
Retail sentiment has turned sharply bearish for Bitcoin, Ethereum, and XRP as the market tests major lows, according to Santiment data.
Retail sentiment around top crypto assets has taken a sharp bearish turn as the market tests major lows, according to Santiment. Bitcoin recorded 0.82 bullish comments for every bearish one, while Ethereum stands at 0.88. XRP looks even weaker, with the ratio falling to just 0.49.
Potential Rebound
This widespread pessimism may not be entirely bad news. Santiment explained that extreme retail fear can create conditions for a market rebound, as major rallies often begin when traders are doubtful and sentiment is heavily tilted toward the bears.
If we continue to see bearish commentary outweigh bullish commentary, especially for top caps, prices will inevitably see a strong relief rally.
Whale Activity
Whales are taking different positions as the market downturn continues. Large holders of Bitcoin and Ethereum have been selling, while XRP whales appear to be accumulating. As Bitcoin dropped from $79,000 to below $73,000, large holders offloaded more than 34,000 BTC worth roughly $2.6 billion.
Ethereum whales reduced their holdings by around 17,800 ETH worth approximately $40 million. XRP, however, saw an accumulation of 65.32 million tokens worth nearly $72 million over four days.
The wallets I'm watching show distribution in BTC and ETH, while XRP whales are buying.
ETF Outflows
Crypto investment products for these assets continue to struggle to attract money. Bitcoin ETFs saw another $95 million leave the market, adding to Monday's $201.08 million outflow. Ethereum funds lost a smaller $1.32 million after seeing $184.51 million in withdrawals a day earlier. XRP ETFs also remained under pressure and lost $7.62 million on Tuesday.
November has been rough so far, with total outflows reaching $1.58 billion for Bitcoin, $551.10 million for Ethereum, and $18.57 million for XRP.
Related
