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Brian Q, an expert at on-chain analytics firm Santiment, shared his insights into controversies in retail sentiment in the past seven days. It looks like Bitcoin (BTC) might be disappointing for the crowd, while some old-school altcoins are in the spotlight again.
Bitcoin's (BTC) failure to hit $100K scares retail traders
Bitcoin (BTC) social dominance, i.e., the percentage of discussions on social media about BTC, dropped to three-month lows despite the orange coin being one step away from $100,000. Such a surprising chart was shared by Brian Q of Santiment in his newest "Crowd Sentiment Coming Back Down to Earth For Top Caps?" report.
🤷 Bitcoin, Ethereum, Solana, and XRP have all suddenly seen a lull in all of the crowd euphoria that was dominating this 2+ month long bull run. Has the $100K BTC party being delayed caused trader-wide depression? Not exactly. Stellar, Polkadot, Celestia, and others are actually… pic.twitter.com/kSC4x7wjnH
— Santiment (@santimentfeed) November 25, 2024
The metric witnessed only one parabolic spike, on Nov. 5, when markets were driven by enthusiasm over the results of the U.S. presidential election. Once it was over, despite new ATHs for the Bitcoin (BTC) price, the social media activity was targeting its third local low in six months.
This, in turn, might be an indicator of market panic, or, at least the disappointment of the traders who were anticipating the next round of the party:
This reveals that a very large amount of traders believe that Bitcoin's failure to capture a $100K market cap is a signal that markets are about to get flushed downward.
It is interesting that Ethereum (ETH), which is lagging terribly behind the ongoing market upsurge, demonstrates a similar pattern. Its social dominance also dropped to multi-month lows.
So did the indicator for Solana (SOL), which recently smashed through an all-time high and is targeting the status of the third largest crypto. For XRP, analysts say, things might look "too good to be true": social media metrics also dropped since owners just cannot believe this rally is about to continue.
Stellar (XLM), Polkadot (DOT), Celestia (TIA) social volumes on fire
Meanwhile, social media interest is on its way to mid-cap altcoins, data shows. Stellar (XLM) saw 289% growth in social volume last week. Polkadot (DOT) and Celestia (TIA) each added over 50% in social dominance.
As explained by Brian Q, the three — XLM, DOT and TIA — "are clearly taking away some shine and attention away from the top caps."
As covered by U.Today previously, Stellar (XLM) was among the top performers in crypto over the weekend. Its cap surged by almost 60% overnight.
The veteran cryptocurrency added 463% in November 2024 and surpassed Shiba Inu (SHIB), the second largest altcoin, by net market cap.