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

A fresh wave of pessimism has hit the crypto markets as Bitcoin drops below $100K again, triggering concern among retail traders. According to Santiment, social sentiment for major cryptocurrencies has soured, with defensive trading strategies becoming more common. However, this negative sentiment may indicate a potential market bottom. Bitcoin's Net Unrealized Profit (NUP) ratio has fallen to 0.476, a historically significant level that often marks turning points and price rebounds. While retail sentiment is bearish, institutional investors appear cautiously optimistic, with plans to increase crypto exposure ahead of impending regulatory changes. Currently, 61% of institutions anticipate bolstering their crypto holdings as regulatory developments unfold in 2026. Meanwhile, on-chain data shows that large wallet losses are being absorbed by new entrants. Despite the prevailing selling pressure, the combination of bearish sentiment, institutional buying, and decreasing exchange reserves could set the stage for a rebound in the near future.

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