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

A wave of pessimism is sweeping the crypto market as Bitcoin falls below $100K for the second time this month, drawing concern among retail traders. Recent data from Santiment show a shift in social sentiment, revealing defensive behavior among traders as major cryptocurrencies decline. Notably, Bitcoin's Net Unrealized Profit ratio has dropped to a historically significant level, suggesting a potential market bottom with previous instances leading to price rebounds. Institutional investors, however, remain cautiously optimistic, with many planning to boost their crypto exposure in light of anticipated regulatory changes. The total crypto capitalization has dropped to approximately $3.47 trillion, indicating a month-long downtrend. Despite this, positive signs for a rebound are emerging, such as falling exchange balances and increased institutional buying. While the market may still face challenges, the conditions appear ripe for a possible recovery as larger players position themselves for the next upward movement.

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