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Analysts from the Santiment platform reported a decline in overly optimistic forecasts regarding the rise in Bitcoin’s price on social media, which serves as a positive indicator for the market.
The number of market participants anticipating new all-time highs within this year has decreased, and investor sentiment is shifting back to a neutral stance.
“Statements predicting that Bitcoin’s price will reach $150,000 or $200,000 are diminishing. The reduction in fear of missing out (FOMO) is a favorable market signal and indicates that retail optimism is waning,” the experts noted.
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Meanwhile, analysts highlighted the differences in market participant behavior. Retail traders holding less than 0.01 BTC are actively purchasing cryptocurrency with each minor price dip. In contrast, large investors with balances ranging from 10 to 10,000 BTC have sold a significant amount of the asset over the past month.
“Historically, sustainable bull markets are formed through the accumulation of assets by ‘smart money,’ rather than through retail purchases during downturns. Genuine market expansion should be accompanied by an increase in user activity, which is currently not observed,” the analysts stated.
According to Santiment’s assessment, Bitcoin market activity is expected to remain low in the coming months, with investors adopting a wait-and-see approach until strong growth factors emerge.
Previously, economist and analyst Lyn Alden indicated that one potential driver for Bitcoin’s growth could be the overheating of stocks in the artificial intelligence sector.
