Santiment: ‘Capitulation’ Trend Fuels Crypto Bottom Debate
Retail participants are examining market signals to determine whether crypto prices have already reached a bottom, according to analytics firm Santiment.
In a report published on Saturday, Santiment said traders are attempting to “meta-analyze” sentiment by watching for signs of others exiting the market to time their own entries — behavior the firm noted often occurs near market troughs.
Santiment linked this to a spike in the usage of the term “capitulation,” which has been among the most discussed crypto phrases on social platforms based on its data.
‘Capitulation’ may already be behind the market, Santiment says
Santiment added that if many traders are waiting for a clear capitulation signal, the low may have occurred while they were on the sidelines. Google Trends data shows searches for “crypto capitulation” rose from a score of 11 to 58 between the weeks ending Feb. 1 and Feb. 8. You can check the full chart and details at Google Trends.
Investors typically remain cautious about declaring a market bottom prematurely, as historical drawdowns can extend even after widespread expectations that the worst has passed. Market analyst Caleb Franzen said on X on Saturday that while “capitulation” is the “word of the week,” bear markets often feature multiple capitulation phases.
Bitcoin (BTC) fell to as low as $60,000 on Thursday, a level last seen in October 2024, amid a continuing downturn.
Crypto analyst Ted said on X on Friday that Thursday’s sell-off resembled capitulation but was unlikely to mark the cycle bottom. Another analyst, CryptoGoos, similarly stated that “true” Bitcoin capitulation has not yet occurred.
Over the past 30 days, Bitcoin has declined 24.27% and was trading at $68,970 at the time of writing, according to CoinMarketCap.
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