Wave of FUD Grows as Traders Bet on Crypto Market Decline on NFT.EU

According to Santiment, in recent weeks market participants have increasingly expected a decline in major cryptocurrencies. Forecasts have turned more negative: traders are betting on Bitcoin falling below $100,000, Ethereum dropping under $3,500, and a broad correction across altcoins.

Analysts note that crowd behavior often moves against actual market scenarios. Periods of panic and fear in the past have frequently coincided with the start of growth. In Santiment’s view, if the current wave of FUD persists, it may signal that a deep pullback will not occur.

The Fear and Greed Index, after several days in the “fear” zone, has returned to a “neutral” level of 49. In August, the index was on average in the “greed” zone, which coincided with the rise of major assets.

The Market Has Not Decided Where To Move Next

According to Charlie Sherry, CFO of BTC Markets, trader behavior usually gravitates toward extremes. When participants broadly expect a decline, it can indicate that the drop is already ending.

Sherry also emphasized that Bitcoin’s return to the $117,000 level has already given early signals of a trend shift. He believes reaching this mark could quickly restore a positive outlook.

At the same time, the $200,000 level remains too distant both in terms of price and timing. This, he said, strengthens short-term uncertainty.

One potential driver of recovery could be rising interest in crypto treasuries, or corporate reserves in digital assets. Companies continue accumulating cryptocurrency, which creates long-term supply pressure and affects investor sentiment.

Slow Growth In The New Cycle

Earlier, analyst Willy Woo stated that Bitcoin’s growth rate in the current market cycle is noticeably lower than expected. According to him, the market is dominated by long-term holders who bought the asset at low prices more than ten years ago. This supply structure reduces liquidity and slows the inflow of new capital.

Woo believes this is one of the key factors holding back price growth even in a favorable macroeconomic environment.

The Market Has Not Decided Where To Move Next

Slow Growth In The New Cycle

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