Crypto Selloff: Bitcoin Dumps Under $99K, but Retail Sentiment Flashes Bottom for BTC, ETH, XRP

A fresh wave of pessimism is sweeping across crypto markets as Bitcoin prices have dipped below $100K again, raising concern among retail traders. Social sentiment surrounding major cryptocurrencies has deteriorated sharply, with analysts noting a defensive approach among traders. Despite the current downward trend, Bitcoin’s Net Unrealized Profit (NUP) ratio has dropped to a level historically indicative of market bottoms. This could suggest a potential price rebound in the near future. Institutional investors appear cautiously bullish, with a majority planning to increase crypto exposure in anticipation of upcoming regulatory developments and altcoin ETF launches. Meanwhile, on-chain data illustrates that market flows are being absorbed by new entrants, while large wallets are facing realized losses. Ethereum reserves on exchanges have fallen to their lowest since May 2024, suggesting a trend of accumulation. Although the market remains under pressure, signs of a possible rebound are emerging, as larger players prepare for the next phase amidst retail retreat.

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