Santiment: Retail investor sentiment shows a positive start to the year; if Bitcoin quickly rises to $92,000, it could trigger FOMO.

BTC1,53%

BlockBeats News, January 3rd, the analyst from the blockchain analysis platform Santiment pointed out that cryptocurrency market participants showed strong sentiment on social media at the beginning of the year, but also warned that whether the market can further rise depends on whether retail investors can remain rational. “We need retail investors to maintain a certain level of caution, some pessimism, and some impatience,” said Santiment analyst Brian Quinlivan in a YouTube video released on Saturday. Although other crypto sentiment indicators show that market participants are feeling fear, Quinlivan said that Santiment’s social media data points in the opposite direction. “The current sentiment is very positive,” he said, “usually this is a bit concerning, but this time it might just be a normal rebound after the holiday season.” Quinlivan stated that he is not overly worried about a surge of FOMO, but added that if Bitcoin rapidly climbs to $92,000, such sentiment could flood into the market. When market enthusiasm is too high, the cryptocurrency market often moves in the opposite direction of most expectations. Quinlivan pointed out that a rapid rise in Bitcoin’s price to that level will reveal the “true reaction of retail investors”: “If they start pouring in funds because of ‘Bitcoin rising,’ that would be a negative signal.” Despite January’s traditionally strong performance, the crypto market still shows signs of fear. Retail investor frenzy in the cryptocurrency market often occurs near all-time highs or cycle peaks, and historical data shows that the market often declines afterward.

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