Santiment: Retail sentiment turns sharply pessimistic, BTC, ETH, and XRP may be nearing short-term bottom signals

According to data from Santiment, the cryptocurrency market has recently come under pressure, with the social sentiment of mainstream assets significantly deteriorating, and retail investors adopting a defensive stance as prices continue to decline.

Santiment's sentiment monitoring shows that the long-short sentiment for Bitcoin has become abnormally flat, Ethereum is only slightly positive, while XRP is at its most fearful level of the year. Historically, when multiple large-cap assets simultaneously exhibit pessimistic sentiment among retail investors, it often coincides with weak hands exiting and the formation of a short-term bottom.

In terms of on-chain indicators, Bitcoin's Unspent Profit Ratio (NUP) has dropped to 0.476, approaching the range seen before several past short-term rebounds. The total market capitalization has currently dipped to about $3.47 trillion, but institutional allocation willingness remains cautiously bullish, with the latest survey showing that 61% of institutions plan to increase their exposure to cryptocurrency assets before the end of the year.

Large holders are also accelerating their accumulation, and ETH exchange reserves have fallen to the lowest level since May 2024, reflecting a mid-term accumulation trend.