The collapse of beleaguered FTX and the arrest of its disgraced founder Sam Bankman-Fried has traumatized the entire cryptocurrency market.
With increasing regulatory scrutiny and investigations, the crypto market is witnessing historically high negativity, not only directed at Bitcoin BTC/USD and Ethereum ETH/USD, but the entire sector. Now, new data shows that pessimism is reaching a threshold level, signaling a potential bottom.
According to the leading crypto analytics firm Santiment, one metric is signaling a bullish turn in the market based on previous bear market pivot points.
There is a whole lot of doom and gloom in #crypto right now. #Binance #FUD, #JeromePowell hawkishness, and the ongoing @SBF_FTX trial headline many reasons why capitulation is prevalent to end the week. Historically, this uncertainty is a bottom signal. https://t.co/vDwNI4VntR pic.twitter.com/RKjzuSV2ZR
Santiment says fear, uncertainty, and doubt (FUD) in the market are reaching peak levels, as determined by the prevalence of negative crypto terms. Those include terms such as “sell” being tracked on multiple social media platforms.
The crypto firm said three altcoins signal bullish sentiment with activity from dormant wallets.
Several #altcoins are seeing big upticks in address activity and dormant wallets awakening to move their funds right now. Others are staying stuck in the mud, and are more likely to fall behind. Read our short take on $YFI, $REN, and $UNI. https://t.co/MI1HQaLUpy pic.twitter.com/sRSyiDvqVe
Santiment also says automatic yield-farming protocol Yearn Finance YFI/USD shows unusual network activity “following a short period of depression.”
The crypto firm said that the decentralized crypto exchange Uniswap UNI/USD is exhibiting strong growth in network activity.
Similarly, the decentralized finance project Ren REN/USD is “not picking up so strong because of its complicated financial situation.”
Also Read: The Wolf Of Wall Street Says He Was Wrong About Bitcoin: 'I Really Hated Crypto'
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