Crypto Sentiment Turns Bearish Amid Market Drop, Bitcoin Rebounds Above $96K

Crypto Market Turns Bearish as Bitcoin Dips to $91,200 The cryptocurrency market saw a sharp decline as Bitcoin (BTC) briefly plunged to $91,200 , coinciding with global stock market losses at the start of the week. According to on-chain analytics platform Santiment , bearish sentiment on social media has reached its highest level in over a year . While some media outlets have linked this decline to “Trump’s trade war,” other factors may also be influencing market sentiment. However, Bitcoin has since rebounded above $96,000 , raising speculation about whether the drop was a temporary shakeout targeting leveraged positions. Why Is Crypto Sentiment Turning Bearish? 1. Macroeconomic Uncertainty & Trade War Fears Trump’s new tariffs on Canada, Mexico, and China have sparked economic concerns . Investors fear potential market instability and rising inflation . 2. Stock Market Correlation Global equity markets saw significant losses , impacting risk assets like Bitcoin . Traders are reducing exposure to volatile markets, increasing short-term selling pressure . 3. Extreme Social Media Bearishness Crypto sentiment has hit its most bearish level in a year , per Santiment data. Historically, extreme skepticism and panic selling often signal strong buying opportunities . Bitcoin’s Rebound Above $96K: Was This a Shakeout? Despite the bearish sentiment , Bitcoin has quickly rebounded above $96,000 , leading analysts to question whether this was a deliberate market shakeout aimed at liquidating overleveraged positions. Key Recovery Indicators: BTC reclaimed $96K despite intense selling pressure. Extreme bearish sentiment often precedes market reversals. Institutional interest remains high , with continued inflows into Bitcoin ETFs. Historically, markets tend to move against the crowd , meaning this extreme pessimism could signal a strong buying opportunity . What’s Next for Bitcoin & Crypto Markets? Bearish Scenario: If macro concerns persist , Bitcoin could face further corrections . Support levels near $90K-$92K will be critical. Bullish Scenario: If Bitcoin holds above $96K , it may regain momentum. Institutional demand through ETFs could support BTC’s price recovery. Conclusion The crypto market has seen a sharp drop in sentiment , with Bitcoin falling to $91,200 before recovering above $96K . While bearish social media sentiment is at a yearly high, history suggests that extreme fear often leads to strong buying opportunities . With global economic uncertainty and market volatility , traders should closely monitor Bitcoin’s key support and resistance levels for potential moves ahead. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on the latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.