According to crypto sentiment platform Santiment, retail investors are checking the crypto marketplace for signs that it could have bottomed out to gauge when to purchase more crypto assets.
“Retail traders attempt to meta-analyze the market and search for signs that others are giving up so as to time their very own entries, which regularly happens near lows,” Santiment said in a report on Saturday.
According to the platform’s data, Santiment linked this to the word “give up,” which has turn into one of the popular crypto terms on social media.
Source: CryptoQuant
The term describes investors who sell their holdings because they fear the market won’t recuperate – a scenario analysts typically observe when assessing whether the market has bottomed.
“Surrender” could have already happened, says Santiment
“If everyone seems to be waiting for a 'give up,' the underside could have already been reached while waiting for a clearer sign,” Santiment said.
Meanwhile, Google Trends data shows searches for “crypto capitulation” increased from 11 to 58 between the weeks ending February 1 and eight.
Search volume for “crypto capitulation” has surged over the past week. Source: Google Trends
Crypto investors are typically cautious about calling a market bottom too early. History shows that prices can proceed to fall even when most individuals imagine the worst is over.
Market analyst Caleb Franzen said in an X post on Saturday that while capitulation is the “word of the week,” many investors don't understand that “bear markets typically experience multiple capitulation events.”
This got here as the worth of Bitcoin (BTC) fell as little as $60,000 on Thursday, a level it has not reached since October 2024, amid its ongoing downtrend.
Some analysts are skeptical in regards to the “cycle low”.
Crypto analyst Ted said in an X post on Friday that “yesterday's plunge looks like a capitulation, however it doesn't represent the underside of the cycle.”
Crypto analyst CryptoGoos expressed the same sentiment, saying: “So far we now have not seen a real capitulation from Bitcoin.”
According to CoinMarketCap, Bitcoin is down 24.27% over the past 30 days and was trading at $68,970 on the time of publication.
The Crypto Fear & Greed Index, which measures general sentiment within the crypto market, fell further into the “Extreme Fear” range on Sunday with a worth of seven, signaling extreme caution amongst investors.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph's editorial guidelines and goals to supply accurate and up-to-date information. Readers are advised to independently confirm the data. Read our editorial policies https://cointelegraph.com/editorial-policy
