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 $100K for the second time this month, leading to a widespread pessimism among retail traders. Despite this adverse sentiment, indicators suggest a potential short-term market bottom for major cryptocurrencies like Bitcoin, Ethereum, and XRP. Data from Santiment indicates that social sentiment has sharply declined, typically signaling a market inflection point. Bitcoin's Net Unrealized Profit (NUP) ratio has also dropped to 0.476, a level historically associated with price rebounds. Despite ongoing selling pressure, a significant percentage of institutional investors remain cautiously bullish, with many planning to increase their crypto exposure in anticipation of regulatory changes. Heavy long-liquidation clusters and falling exchange balances contribute to the sentiment that larger players may be positioning for a recovery, contrasting with retail traders' reticence under current market conditions. Overall, while the market drifts lower, conditions are building for a potential rebound as larger investors prepare for future growth.

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