As the workweek closed, the cryptocurrency market faced some rough seas, with several assets plummeting up to 10% from their recent highs. BTC and XRP were not immune to this downturn, facing significant drops largely influenced by fear, uncertainty, and doubt (FUD) sparked by major sell-offs. However, a significant bullish indicator has been identified by Santiment.
Could BTC and XRP Be Ready to Change Course?
The famous investment advice from Warren Buffett – buying when others are fearful and selling when they are greedy, resonates deeply in the volatile cryptocurrency market, where investor sentiment often swings between these two extremes. Santiment, a big advocate of this investment philosophy, pointed out recent shifts in investor behavior in their latest post. Based on overall social dominance, they concluded that BTC and XRP have moved out of the greed zone, even after hitting new all-time highs just a week ago and presently trading slightly below them.
This shift is primarily due to BTC’s tumble from over $123,000 to under $115,000, and XRP’s decline from $3.65 to just below $3. According to Santiment, the markets typically move contrary to crowd expectations, suggesting that BTC and XRP might be prime “buy-low” options.
While Bitcoin and XRP are experiencing low greed levels, Ethereum’s impressive +147% gains since early April continue to keep traders bullish. However, this level of greed among retail investors may not bode well for it.
Galaxy Wraps Up Major Sell-Off
A significant sell-off initiated by Galaxy Digital on behalf of a third party may have contributed to BTC’s sharp price drop yesterday to a two-week low. Yet, late on Friday, Mike Novogratz’s firm announced the successful execution of “one of the largest national bitcoin transactions in the history of crypto on behalf of a client.”
“Galaxy completed the sale of over 80,000 bitcoin—valued at over $9 billion based on current market prices—for a Satoshi-era investor, marking one of the earliest and most substantial exits from the digital asset market.”
With such a significant sell-off now in the past and retail investors’ diminishing greed for BTC, the cryptocurrency could be poised for another surge, possibly exceeding its all-time high.
