NaijNaira
Bitcoin’s drop below $113,000 has triggered a new wave of fear among small traders, pushing sentiment to its lowest point in months — www.naijnaira.com reports.
Analytics platform Santiment revealed that retail investors have abandoned optimism after repeated failed rallies, creating the most bearish social media chatter since June.
“Retail traders have done a complete 180,” Santiment noted, describing how panic selling has intensified across forums and trading groups.
Contrarian traders, however, see these extreme levels of fear as potential bottom signals, since markets often turn once the crowd leans heavily in one direction.
Data suggests that retail capitulation often precedes rebounds, rewarding investors who accumulate while others exit in panic.
Open interest has surged beyond $40 billion, and funding rates remain positive, showing that leveraged players and whales are still betting on upside, according to research from XWIN Japan.
The risk lies in excessive leverage, which could trigger mass liquidations if Bitcoin dips further, amplifying short-term volatility.
Meanwhile, institutions continue to quietly accumulate, with ETFs and corporate treasuries now holding over 1.3 million BTC as a long-term counterweight.
Analysts note that Bitcoin has historically shown weakness 480 days after a halving, only to rally strongly about a month later, hinting at a possible recovery by October.
