Crypto Sentiment Sinks to Lowest Level in 3.5 Years

💡 DMK Insight

Investor fear in crypto is at a critical juncture, echoing the panic seen during Terra’s collapse. This sentiment shift is driven by escalating macroeconomic pressures, which could lead to increased volatility in the coming weeks. Traders should be wary of how this fear manifests in price action, particularly if we see a breach of key support levels. If Bitcoin or Ethereum falter below their recent lows, it could trigger further sell-offs, similar to past market reactions during crises. On the flip side, this fear might create buying opportunities for those looking to accumulate at lower prices. Keep an eye on sentiment indicators and volume spikes, as they can provide clues about potential reversals. The real story here is how long this fear lasts and whether it leads to a capitulation phase or a swift recovery. Watch for any signs of stabilization in the next few trading sessions, as that could signal a shift in momentum.