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

A recent selloff in the cryptocurrency market has seen Bitcoin drop below $100,000 for the second time this month, prompting a wave of negative sentiment among retail traders. According to data from Santiment, social sentiment has soured significantly, indicating retail traders have become defensive as prices decline. However, this mood shift may signal a potential market bottom. Bitcoin's Net Unrealized Profit (NUP) ratio has fallen to 0.476, historically a level that suggests short-term price rebounds could follow. Institutional investors appear cautiously optimistic, with over half planning to increase their crypto exposure ahead of anticipated regulatory changes and altcoin ETF launches in 2026. Though the overall market capitalization of cryptocurrencies has fallen to about $3.47 trillion, there are signs that larger players are absorbing recent losses and preparing for a recovery. Data highlights that while retail sentiment is mixed, accumulating institutional investments may lead to a stronger market position moving forward.

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