Blockchain analytics firm Santiment notes that the prevalent fear in the cryptocurrency market, reflected in trending crypto terms related to hardware wallets and security, may be a harbinger of Bitcoin’s impending rebound.
According to a report by The Daily Hodl, Santiment recently noted a possible bullish outlook for Bitcoin (BTC), with a key metric resembling the circumstances following the FTX collapse in November 2022. According to Santiment, the pervasive fear in the digital assets space, denoted by the predominance of trending crypto keywords related to hardware wallets and security, mirrors the concerns witnessed post the FTX collapse, which subsequently proved to be a market bottom.
This fear factor is not the only indicator suggesting a possible Bitcoin rebound. Santiment observed a rise in social media chatter about Bitcoin as its price dropped to $26,000. The increased social dominance of BTC, generally considered a sign of fear, may enhance the probability of a market rebound.
Moreover, Santiment pointed out a significant reduction in Bitcoin transactions, a low not seen since July 2021. This period marked the bottom for Bitcoin at around $29,000 before its rally to an all-time high of approximately $69,000. For the first time since July 2021, the network reportedly witnessed fewer than 800,000 unique BTC addresses transacting daily. This decrease in Bitcoin’s utility and a correction in market prices may provide another indication of a potential upswing for the cryptocurrency.
Per data from TradingView, currently, the BTC price is trading at around $27,077, up 0.86% in the past 24-hour period.