The cryptocurrency market is currently engulfed in an atmosphere of intense fear, uncertainty, and doubt (FUD), leading to extreme bearish sentiment surrounding several top assets. With Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL) experiencing significant declines, traders are increasingly pushed into panic mode. However, historical trends suggest that a potential bottom may be on the horizon.
Market Sentiment Hits Rock Bottom
According to on-chain analytics from the digital asset market intelligence platform Santiment, the wider crypto community has adopted an overwhelmingly bearish outlook following recent price dips. As of last Friday, Bitcoin’s price dropped sharply from a high of $99,400 to $86,000.
Currently, Bitcoin is trading at approximately $88,820, marking a 2.6% decline in the last 24 hours. Over the past week, the cryptocurrency has seen a nearly 7% drop, while the monthly loss is even more pronounced at 11.7%.
The spot ETF market has not fared much better, experiencing six consecutive days of outflows last week. On February 24 alone, withdrawals reached an astounding $516 million, indicating growing caution among institutional investors. This figure surged to over $900 million on Tuesday.
Meanwhile, Ethereum has also faced a challenging February, with its price falling below the $2,400 threshold. Traditionally, the second month of the year has been bullish for Ethereum, but 2025 has proven to be an exception to this trend.
The recent Bybit hack, linked to suspected operatives of the Lazarus Group who absconded with an estimated $1.4 billion in crypto, along with Trump’s trade tariffs on Mexico and Canada and broader market uncertainties, have seen ETH decline by 25% this month, recently hitting a low of $2,310.
Bleak Times for XRP and SOL
Similarly, XRP has dipped to around $2.2, nearing its key support level at $2. Market analysts have indicated that if selling pressure continues, the token could test the $1.6 mark in the coming days.
Solana is facing comparable challenges, having been severely impacted by whale sell-offs in the past month. As noted by crypto analyst Ali Martinez, at least 135 significant holders offloaded their assets, contributing to a 20% weekly decline. Experts suggest that with a major token unlock scheduled for March 1, SOL could be subject to further selling pressure.
Despite the prevailing bleak sentiment, some analysts remain optimistic. According to Santiment, extreme levels of FUD often signify a market bottom, indicating that a potential turnaround may be imminent.
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