Bitcoin and Ethereum Capitulation Signals: Investor Sentiment is Declining

The recent fluctuations in the cryptocurrency market have increased investor interest, while a negative wave appears to be developing, especially in leading digital assets like Bitcoin and Ethereum. According to data shared by a Santiment analyst, investor sentiment has quickly turned negative, indicating a possible capitulation process.

For Bitcoin, the ratio of optimistic to pessimistic comments on social media is nearly equal. This indicates a level of optimism that is significantly lower than usual. On the other hand, optimistic comments from Ethereum investors are only about 50% higher than pessimistic ones. This ratio paints a rather weak picture compared to previous periods, while the situation for XRP is even bleaker. Less than half of the comments regarding XRP are positive, signaling a process that is marked as one of the most fearful moments of 2025.

The Santiment analyst emphasizes that these data suggest major cryptocurrencies are approaching a capitulation process. Historically, when investor sentiment has dropped to these levels, retail investors tend to sell, while major players take the opportunity to buy at lower prices. The analyst stresses that this is not a matter of 'if' but 'when.'

Monitoring market sentiment is crucial for investors. Intense moments of collective fear in the crypto market often occur before significant price movements. Therefore, tracking investor sentiment offers an important opportunity to catch market turning points. Santiment states that regularly monitoring the sentiment ratio graphs for Bitcoin, Ethereum, and XRP can provide significant advantages.