Retail traders' expectations have fallen as Bitcoin reaches a 17-day low.
Bitcoin dropped below $113,000, marking its lowest level in 17 days, sparking panic among retail traders. Analysts at Santiment reported that social sentiment has become "extremely pessimistic," marking the sharpest negative shift since June 22, when tensions in the Middle East triggered widespread selling.
Interestingly, Santiment views this extreme fear as a potential buying signal, noting that retail traders often sell out of panic while long-term investors remain steady. The firm added, "Markets tend to move in the opposite direction of public expectations," suggesting the possibility of an imminent recovery.
On Tuesday, Bitcoin's value fell to $112,656 on the Coinbase platform, its lowest level since August 3, and it is now down 8.5% from its all-time high of $124,000 reached last week. The total market capitalization of cryptocurrencies has also dropped to below $4 trillion. The Fear and Greed Index has fallen to 44 ("Fear"), its weakest level since late June.
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