Fear, uncertainty, and doubt have again taken over crypto social media following a bout of panic selling from weak-handed retail traders.
“FUD has taken over social media,” following Bitcoin’s 16% fall over the past week, said blockchain analytics firm Santiment on Monday.
The crash was “a result of retail selling their bags,” it stated before adding that “this is more proof that markets move in the opposite direction of the crowd’s narratives.”
“Negative posts about crypto continue to flood in, with social data indicating that this is the most bearish that retail has been since the November 21st crash.”
Crypto markets tanked 19% in November, with $680 billion exiting the space. Comparatively, the recent crash has been shallower, with a 14% slide and a $440 billion exodus, but it has sent markets back to April 2025 lows.
A Relief Rally In Sight?
“In most cases, there is a relief rally following major negative times like this,” said Santiment. “Thus far, this bounce is encouragingly looking like the previous two instances following FUD.”
However, there have been few signs of recovery yet, with Bitcoin still trading at nine-month lows around $78,000 and Ether obliterated at bear market lows around $2,300.
😠 FUD has taken over social media following Bitcoin’s -16% since January 28th. After falling as low as $74.6K, $BTC has rebounded back up to $78.3K as a result of retail selling their bags. This is more proof that markets move the opposite direction of the crowd’s narratives.… pic.twitter.com/NDffU98ZWM
— Santiment (@santimentfeed) February 2, 2026
CryptoQuant analyst ‘Darkfost’ blamed the record October leverage flush, saying that the event “is really the one that pushed BTC into a bear market.”
“Liquidity destruction in an already uncertain crypto market environment is not conducive to a return of speculation, which is nonetheless a key component of the crypto market.”
Analyst ‘Sykodelic’ was bullish, noting that the expansion in this week’s manufacturing PMI data is a positive sign for the economy.
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“We are not in a bear market and will not be heading down for 10 months and getting a 75% retrace. The cycle is gearing up for expansion, not at the end of it.”
Bitcoin at Big Support Level
“Big support level at $74K, which will be the main thing to watch in the week(s) ahead,” said analyst ‘Daan Crypto Trades.’ Sweeps would be okay, but closes below that point would “spell further trouble,” he added.
“Overall, it’s easy to see how the market structure has shifted bearish also on the higher timeframe, with the bearish rejection at $98K and this latest leg down.”
BTC was trading at $78,500 at the time of writing, down 11% on the week and 10% since the beginning of the year.
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