Crypto 'Dead' Chatter Sparks Bullish Sentiment Among Analysts
Concerns that 'crypto is dead' are trending on social media once again, but analysts say this could be a bullish sign for major cryptocurrencies like BTC, ETH, and XRP.
Santiment flagged an increase in fear language, such as words like 'dead', 'dying', 'over', 'ended', and 'finished', which typically appear when retail investors lose patience and treat temporary weakness as permanent failure.
Crypto markets often move against the crowd during periods of extreme fear, according to analyst Alan Rogers. He notes that every major spike in the 'crypto is dead' narrative has coincided with Bitcoin being close to finding a bottom.
CryptoQuant's EgyHash observed that Bitcoin's supply in profit has dropped to 51.4%, indicating that roughly 48.6% of circulating supply sits underwater at current prices near $63,400.
At these levels, over-leveraged traders and weak hands are being flushed out, transferring coins to buyers with lower cost basis and higher conviction.
Glassnode's Week On-Chain report highlighted that Bitcoin is compressed between the median realized price of $63,000 and the short-term holder cost basis of $68,700, with seller exhaustion signals building but not yet confirming a full capitulation signal.