Bitcoin took a nosedive in the last 24 hours, leaving fans stunned and the market scrambling. Many figured the FTX collapse drama had mostly blown over, but analytics outfit Santiment says there’s more to this tumble than meets the eye—and it’s not just old news.
Santiment, a go-to for on-chain crypto insights, points the finger at a nasty brew of fear, uncertainty, and doubt—FUD, in crypto lingo. They say Bitcoin’s wrestling with relentless selling pressure, plunging to $15,000 for the first time in two years. FTX’s implosion might’ve lit the fuse, but the real fire’s coming from shaken trust in centralized exchanges. Folks just aren’t feeling safe anymore
The data backs it up: derivative traders are cashing out fast, slashing their bets and tanking open interest across platforms. Pair that with a market already strapped for liquidity, and you’ve got a perfect storm dragging Bitcoin down. Santiment’s spotted another telltale sign—wallet activity’s spiking as people yank their coins off exchanges and into self-custody, a classic move when confidence wanes. Flip that script during a bull run, and you’d see traders piling into exchanges to ride the wave with leverage and chase bigger gains.
So, what’s next? Observers are scratching their heads, but the vibe’s grim. Santiment hints at a stagnant market ahead, choked by thin liquidity and no fresh cash rolling in. CoinShares chimed in with a report saying big institutional players are still steering clear of crypto, likely waiting out U.S. monetary policy shifts before dipping their toes back in. Risk’s off the menu for now.
