PANews reported on January 31st that, according to CoinDesk, on-chain data analytics platform Santiment pointed out that the proportion of panic discussions aboutPANews reported on January 31st that, according to CoinDesk, on-chain data analytics platform Santiment pointed out that the proportion of panic discussions about

Analysis: Bitcoin panic has risen to its highest level this year; after the selling pressure subsides, buying interest may return.

2026/01/31 23:46
1 min read
News Brief
According to blockchain analytics firm Santiment, Bitcoin-related panic chatter across social platforms has surged to levels not seen since 2026, while overall market sentiment has plunged to its weakest point since last November—a dramatic swing from cautious optimism to outright fear. Should macroeconomic turbulence persist or Bitcoin fail to recapture the critical price thresholds traders are monitoring, analysts believe this panic could linger for several days, prolonging near-term volatility. Currently, markets are in full risk-off mode, with equities and precious metals retreating following recent gains. Tightening cross-asset liquidity and unwinding of leveraged trades will likely continue pressuring crypto assets. However, when sentiment crashes this severely, we're often approaching capitulation—the point where institutional investors typically swoop in to accumulate as retail holders panic-sell. If Bitcoin's price manages to stabilize gradually, this pessimistic atmosphere could reverse swiftly, potentially triggering a strong rebound.

PANews reported on January 31st that, according to CoinDesk, on-chain data analytics platform Santiment pointed out that the proportion of panic discussions about Bitcoin on social media has risen to its highest level since 2026, while market sentiment indicators have fallen to their lowest point since November last year, with the overall atmosphere shifting from cautious to clearly panicked. The analysis indicates that if macro market volatility continues, or if Bitcoin fails to recover key price levels watched by traders, the panic could persist for several days, and the short-term trend may remain volatile. The current market is in a de-risking phase, with stocks and precious metals experiencing corrections after previous gains. The contraction of cross-market liquidity and the cooling of leveraged funds may also continue to affect the cryptocurrency market. However, a sharp deterioration in sentiment often approaches a phase of "capitulation selling," where long-term funds typically choose to buy at lower levels as retail investors exit under pressure. If the price of Bitcoin gradually stabilizes, the current pessimistic sentiment could quickly reverse and drive subsequent buying back in.

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