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Bitcoin’s recent struggle to break the $100,000 barrier has led to a notable dip in retail trader sentiment, reflecting underlying market anxieties.
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In light of this, other cryptocurrencies, particularly mid-cap altcoins like Stellar, Polkadot, and Celestia, are witnessing a surge in social engagement, indicating a shift in investor focus.
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Brian Q of Santiment noted, “The social dominance metrics reveal traders’ apprehension, as many express disbelief in Bitcoin’s possible rebound and lower projected growth.”
Bitcoin struggles to reach $100K, retail sentiment dampens, while mid-cap altcoins gain traction amid shifting investor interest.
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.
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 COINOTAG 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.
Conclusion
In summary, Bitcoin’s inability to break the $100,000 ceiling is causing retail traders to reevaluate their positions amidst growing concerns. Meanwhile, mid-cap altcoins like Stellar, Polkadot, and Celestia are capturing investor interest, potentially indicating a new trend in the market. As the cryptocurrency landscape continues to evolve, it remains crucial for traders to stay informed and adapt their strategies accordingly.
