Crypto Sentiment Split: Retail Crypto Sentiment Hits Rock Bottom
As the Crypto Fear & Greed Index dropped to a fear score of 44, Bitwise’s Matt Hougan stated that retail cryptocurrency sentiment is at its lowest level in years. While seasoned cryptocurrency investors are more hopeful than ever about the market as a whole, he claims that consumer interest is at its lowest levels in years. Although other experts contend that it differs depending on the cryptocurrency token, this sentiment is shared throughout the industry.
There is an absolutely massive disconnect between retail and professional sentiment in crypto right now. Retail sentiment is the worst it’s been in years, while professional investors are extraordinarily bullish. It’s like living in two completely separate worlds,
Hougan
Why Are Meme Coins Crashing? PEPE, SHIB, and DOGE See Double-Digit Losses
James Seyffart, an analyst for Bloomberg ETFs, stated that the reason it is down is that retail is holding a lot of altcoins, meme coins, etc. that are severely declining. In the last seven days, the three biggest meme coins by market capitalization have experienced a decline of almost 20%.
- Pepe has dropped by 32.11%
- Shiba Inu has fallen by 20.11%
- Dogecoin has decreased by 24.52%
Biggest Crypto Liquidation Ever? Trump’s Trade Policies Shake Markets
A wider cryptocurrency boom was triggered by Donald Trump’s victory in November, which caused Bitcoin to reach $100,000 for the first time in December 2024. However, recent macro events, like Trump’s tariffs on China, Canada, and Mexico, rocked the market and set off the biggest cryptocurrency liquidation event ever. Although Bitcoin has also been negatively impacted, altcoins have been the most severely damaged.
However, when looking at the overall framework, it was also seen that it was the retail traders who were hit the hardest compared to professional ones. In an X post, pseudonymous cryptocurrency trader DeFi Dad stated that Solana retail sentiment is slightly more optimistic than experts, whereas Ether sentiment is the opposite.
ETH sentiment for retail is worst ever–prob more bullish with pros,
DeFi Dad
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