Crypto Chaos: FUD Frenzy Unleashed!

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“FUD has taken over social media,” one might say, if they had a penchant for dramatics and a disdain for optimism. Following Bitcoin’s 16% fall, the blockchain analytics firm Santiment declared, with all the gravitas of a Shakespearean tragedy, that “markets move in the opposite direction of the crowd’s narratives.” How very original.

The crash, it seems, was “a result of retail selling their bags,” which is code for “everyone’s panicking like a toddler who just lost their favorite toy.” Santiment’s report reads like a Victorian melodrama, complete with dire warnings and a dash of faux wisdom.

“Negative posts about crypto continue to flood in,” they lament, as if crypto were a soap opera and not a volatile asset class. “This is the most bearish that retail has been since the November 21st crash.” How thrilling. A new low, achieved with the flair of a seasoned performer.

Crypto markets tanked 19% in November, with $680 billion exiting the space. Comparatively, the recent crash has been “shallower,” which is a polite way of saying “not as bad as last time, but still a disaster.” Yet here we are, back to April 2025 lows, because nothing says “recovery” like a nostalgic trip to the past.

A Relief Rally In Sight?

“In most cases, there is a relief rally following major negative times like this,” Santiment insists, as if they’re the only ones who’ve ever heard of such a thing. “Thus far, this bounce is encouragingly looking like the previous two instances following FUD.” How reassuring. It’s like a broken clock that’s right twice a day.

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. Ah, the sweet taste of despair. One can only imagine the champagne corks popping at the next rally.

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.…

– Santiment (@santimentfeed) February 2, 2026

CryptoQuant analyst ‘Darkfost’ blamed the record October leverage flush, declaring it “the one that pushed BTC into a bear market.” How convenient. It’s always someone else’s fault, isn’t it?

“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.” A masterclass in circular logic, if ever there was one.

Analyst ‘Sykodelic’ was bullish, noting that the expansion in this week’s manufacturing PMI data is a positive sign for the economy. “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.” How very confident of them. One wonders if they’ve ever heard of a “crash.”

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. How very optimistic.

“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.” A poetic description of a financial apocalypse.

BTC was trading at $78,500 at the time of writing, down 11% on the week and 10% since the beginning of the year. A veritable feast of losses, if ever there was one.

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2026-02-03 10:01