- Retail sentiment is at its worst while institutions are “extraordinarily bullish,” said Bitwise’s Matt Hougan.
- Ethereum leads the negative sentiment.
- Even Donald Trump’s media company is now vying for a crypto ETF.
Sentiment among crypto investors is split down the middle, according to Bitwise’s chief investment officer Matt Hougan.
“There is an absolutely massive disconnect between retail and professional sentiment in crypto right now,” Hougan said on X. “Retail sentiment is the worst it’s been in years, while professional investors are extraordinarily bullish.”
New Bitcoin addresses — which helps gauge how much renewed interest there is in the asset — have been in a lower range than years prior, according to Glassnode.
Others think that the depressed sentiment is from investors who are suffering heavy losses in alternative cryptocurrencies.
“Feels like its because retail is holding a ton of alt coins and memecoins that are down really bad,” said James Seyffart, ETF expert at Bloomberg.
Bitcoin’s price dropped 6% this week to $98,300. Other cryptocurrencies have seen similar drops, with Ethereum shedding 18% of its price tag to $2,716, and Ripple’s XRP down 20% to $2.46.
Yet, institutions are still eyeing Bitcoin.
Bitcoin ETFs accumulated $107 billion in 2024, marking the best debut in ETF history. They now control nearly 6% of Bitcoin’s total supply. Michael Saylor and his software firm are also behind a lot of the buying. Strategy, formerly known as MicroStrategy, holds more than 471,000 Bitcoin, worth $29 billion.
BlackRock is pushing out a new Bitcoin ETF in Europe; and what’s more, another heavyweight is interested in crypto exposure for its clients. Donald Trump’s media company announced it was filing for a “Bitcoin Plus ETF,” which suggests a regulated investment fund that offers exposure to more than just Bitcoin.
Ethereum
Ethereum’s lackluster price action is driving a lot of the negative sentiment.
Against Bitcoin, Ethereum shed 50% of its value in the past year, with the ETH/BTC ratio dropping to its lowest level in four years, according to CoinGecko.
Meanwhile, some of Ethereum’s major competitors have been able to chew away at its market share — with some traders even suggesting XRP is prime to flip its second place spot — but the cryptocurrency hasn’t been able to break its previous all-time high of $4,848.
That said, institutions are still buying.
Coinglass data shows six straight days of institutional ETH purchases, with the second largest daily inflow taking place on February 4. Entities added more than 106,000 Ethereum to their accounts.
Still, the sentiment divide between retail and institutions is still colossal, according to Hougan.
“It’s like living in two completely separate worlds,” he said.
Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at psolimano@dlnews.com.