Crypto market sentiment may not be as bullish as expected

Despite Bitcoin (CRYPTO:BTC) nearing $70,000, market sentiment might not be as bullish as it appears, according to independent analyst Matthew Hyland.

While Bitcoin’s price surge has sparked a wave of optimism among traders, Hyland warns that broader market enthusiasm is still relatively subdued, particularly among retail investors.

In an Oct. 18 post on X, Hyland explained, “I don’t think the sentiment is that bullish currently,” calling the crypto market an “echo chamber” where participants may overestimate the general outlook.

He emphasised that a significant shift in sentiment would require a greater level of participation from retail investors.

According to Hyland, current market activity is only about 10% of what it was in 2021 and around half of what it was earlier in 2024.

Data reflects this trend, as search volumes for “Bitcoin” recently hit a one-year low, indicating limited interest from outside the crypto space.

Meanwhile, the Crypto Fear and Greed Index, which measures the mood toward Bitcoin and the wider crypto market, recently moved into "Greed" territory with a score of 72, up from 49 earlier in October.

Although some traders have shared more optimistic views, with Glassnode analyst James Check calling Bitcoin’s price chart “bullish,” Hyland’s cautious perspective suggests a need for balance.

Onchain analytics firm Santiment has also cautioned that market sentiment can shift unexpectedly, noting, “Markets historically always move in the opposite direction of the crowd’s expectations.”

At the time of writing, the Bitcoin price was $69,108.13.