A recent report by the market intelligence and analytics platform Santiment shows that the rise of fear, uncertainty and doubt (FUD) among crypto investors might soon affect cryptocurrency prices.
Over the last five weeks, digital currency traders seem “less optimistic toward the top assets,” per Santiment. The pessimistic analysis comes as the total crypto market capitalization dropped from its local top of $1.29 trillion on April 14.
According to CoinMarketCap (CMC) data, the total market cap stands at $1.26 trillion at the time of writing.
Moreover, crypto prices have historically risen when traders start to show “more and more doubt,” the report says. However, a bear market might be on the way.
According to Santiment, “buy” keywords are still higher than the “sell” keywords on social media platforms. But the volume of both keywords is downward, showing uncertainty among investors.
Furthermore, crypto investors seem “biased” toward “longing.” This might be due to bitcoin’s (BTC) move over the $30,000 mark, which brought “optimism” to the digital currency market.
“So overall, it appears that the loudest voices in crypto have quieted down and are not putting out as much of a bullish narrative as they had been in previous months. But when it comes to where traders are actually placing their bets, away from the discussion forums, it looks like there is a bit of a longing bias.”