Despite Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and XRP (CRYPTO: XRP) breaking key psychological levels, on-chain data shows mixed trader behaviour, with small investors buying dips while whales continue selling.
What Happened: According to Santiment data, Bitcoin fell below $100,000 for the first time since June as Ethereum dropped 17% in a week.
Social metrics indicate extreme fear, with terms like "100K" and "bear market" dominating crypto chatter.
Retail traders have shifted from meme coins to major assets, often a contrarian bottom signal.
Tuesday marked the third-most bearish sentiment day in six months for Bitcoin and the second-most bearish for Ethereum, levels historically linked to local bottoms.
Small wallets (<0.01 BTC) are aggressively accumulating, while whales (10–10K BTC) have been offloading coins for weeks, though some resumed dip-buying in the past 24 hours.
XRP sentiment remains muted, with a neutral ratio of bullish to bearish commentary, indicating indifference rather than fear.
Overall, despite heavy losses and rising fear, data suggests capitulation may be near, setting the stage for a potential short-term relief rally if accumulation persists.
Also Read: Peter Schiff Says Bitcoin, Ethereum Are In A Bear Market
Why It Matters: Santiment data reveals a sharp divergence between retail and institutional behaviour thereby cautioning traders of a drop below $100,000:
- Whales & Sharks (10–10K BTC): Control 68.5% of supply, sold 38,366 BTC (-0.28%) since Oct. 12.
- Shrimps (<0.01 BTC): Hold 0.25% of supply, added 415 BTC (+0.85%) in the same period.
This indicates ongoing distribution, not full accumulation. For a lasting bottom, retail must capitulate while whales start reaccumulating.
Once this shift occurs, Santiment says, it could signal the ideal buying window for the next leg higher.
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