According to on-chain analytics platform Santiment, new investors in the market could cause whales to become even stronger.
Crypto markets started the week on a downward note, sparking panic among retail investors in particular. According to data shared by Santiment, Bitcoin and Ethereum have been facing intense fear, uncertainty, and doubt (FUD) from investors who have only recently entered the market over the last 2-3 months.
Whales can pick up from the bottom
These new investors are unfamiliar with the current market conditions as they have not experienced medium-sized corrections before, and this is triggering emotional selling. The increasing FUD on social media platforms indicates that investors are misinterpreting market movements and panic selling is gaining momentum.
Santiment notes that such panic selling has historically created buying opportunities for large investors, or whales. This cycle of market psychology allows large investors to accumulate more cryptocurrencies at low resistance, which usually leads to rallies. However, it remains unclear whether this rallies will happen immediately.
Stay tuned.
