Crypto Markets Suffer Reversal as Sentiment Shifts Negative

Bitcoin (BTC) and Ethereum (ETH) are no longer soaring after initially reaching new highs, with sentiment shifting negative according to data provider Santiment. XRP also declined in price following the shift.

The jobs numbers report came out weaker than expected, causing BTC to drop from $86,500 to $84,600. This led to a sharp reversal in Ethereum and XRP as well, both of which had been rallying earlier in the day.

Santiment notes that social sentiment has turned sharply negative, with bearish commentary now dominating conversations about ETH and XRP on platforms such as Reddit and Telegram. The firm's data shows that ETH is currently at a ratio of 0.89 bullish comments per bearish comment, its lowest since June 7.

XRP's ratio is even lower at 0.67, its weakest reading since August 17. Santiment argues that heavy pessimism can create a contrarian setup, where the panic selling may have already happened and prices are poised to bounce back.