Analysis: Bitcoin panic sentiment rises, but after the selling pressure is released, buying may return

According to CoinDesk, on-chain data analysis platform Santiment has revealed that the current proportion of panic discussions about Bitcoin on social media has risen to its highest level since 2026, while the market sentiment indicator has dropped to its lowest point since November of last year, with the overall atmosphere shifting from cautious to clearly panicked.

The current market is overall in a de-risking phase, with the stock market and precious metals experiencing a pullback after previous gains. The contraction of cross-market liquidity and the cooling of leveraged funds may also continue to affect the trends in the crypto market. However, a sharp deterioration in sentiment often approaches a phase of "capitulation selling," where retail investors exit under pressure while long-term funds typically choose to accumulate at lower levels. If Bitcoin's price gradually stabilizes, the current pessimistic sentiment may quickly reverse and drive subsequent buying back into the market.

Analysis indicates that if macro market volatility continues, or if Bitcoin fails to reclaim key price levels that traders are watching, panic sentiment may persist for several days, and the short-term trend may remain volatile.