Crypto Sentiment Shifts Bearish As Bitcoin Sees Renewed Interest From Institutions And Nations

Over the past two weeks, crypto market sentiment has taken a dramatic turn. Investors, particularly those in altcoins and memecoins , have shifted from bullish optimism to bearish caution. Declining market caps have led to a reduced appetite for riskier assets, with attention refocusing on Bitcoin. While the current fear and uncertainty dominate discussions, seasoned traders recognize this phase as an opportunity to capitalize on the “blood in the streets” cycle that often signals a bottom. The crypto majority has flipped their moods from bullish to bearish in an alarming fashion these past 2 weeks. As market caps have corrected (particularly altcoins), there is far less interest in meme coins and far more interest back on Bitcoin. This crowd FUD is a healthy… pic.twitter.com/9ByahlY7MZ — Santiment (@santimentfeed) December 23, 2024 Amid this mood shift, Bitcoin continues to attract significant institutional and national investment. El Salvador, a vocal supporter of Bitcoin adoption, has ramped up its accumulation efforts. Over the past week, the nation added 29 $BTC to its reserves, spending $2.84 million and increasing its total holdings to 5,995 $BTC, valued at $562 million. The El Salvador government is ramping up its $BTC accumulation! Over the past week, El Salvador purchased 29 $BTC ($2.84M), bringing its total holdings to 5,995 $BTC ($562M). https://t.co/ViqrVRGXfi pic.twitter.com/ZXaKIVhzkm — Lookonchain (@lookonchain) December 23, 2024 Meanwhile, MicroStrategy has also expanded its Bitcoin holdings. The company purchased an additional 5,262 $BTC for $561 million last week, at an average price of $106,662 per Bitcoin. MicroStrategy now holds an impressive 444,262 $BTC, valued at $42.58 billion, with an average purchase price of $62,257 per Bitcoin. The company’s unrealized profits currently stand at approximately $14.92 billion, underscoring its position as one of Bitcoin’s largest institutional backers. MicroStrategy bought another 5,262 $BTC ($561M) at an average price of $106,662 last week! #MicroStrategy currently holds 444,262 $BTC ($42.58B), with an average buying price of $62,257 and an unrealized profit of ~$14.92B. https://t.co/CaH8bkAxIs pic.twitter.com/Rc5vdW1RXz — Lookonchain (@lookonchain) December 23, 2024 Institutional inflows into Bitcoin-focused financial products are also surging. Between December 16 and December 20, Bitcoin spot ETFs saw net inflows of $449 million. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) recorded a substantial weekly net inflow of $1.45 billion, reflecting growing confidence from traditional finance. Bitcoin spot ETF had a net inflow of US$449 million from December 16 to December 20 last week, and BlackRock ETF IBIT had a weekly net inflow of US$1.45 billion. https://t.co/YanotfbWiJ pic.twitter.com/v48SxymqF6 — Wu Blockchain (@WuBlockchain) December 23, 2024 As institutional players and nations continue to bolster their Bitcoin holdings, the cryptocurrency’s dominance in the market remains unshaken. The current bearish sentiment among retail traders could mark a strategic entry point for those anticipating the next upward cycle. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: Traxer on Unsplash // Image Effects by Colorcinch

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