Crypto Market Faces Bearish Sentiments as August Begins- What’s Next

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As the world calendar flipped to August, the cryptocurrency market experienced increased bearish sentiments. Furthermore, the cryptocurrency altcoin market had significantly lost the initial July bullish momentum that was triggered by the SEC vs Ripple ruling. With Bitcoin dominance hovering around 49.8 percent, traders were more uncertain of the altcoin rally in the coming weeks, despite the high-impact news on Litecoin (LTC) halving.

Santiment’s Insights: Fear Grips Crypto Traders

According to a crypto report compiled by on-chain intelligence platform, Santiment, digital asset traders have fallen into a lull after most trade setups failed to materialize as expected. As a result, Santiment concluded that most traders are under the spell of fear, with Bitcoin showing more short-term weaknesses. Interestingly, Santiment highlighted that crypto whales too have significantly decreased their trade volume.

Notably, Bitcoin’s social dominance has also significantly declined in the past few weeks as more traders opted to watch from the sides. The increased fear in the crypto market has coincided with a declined liquidity despite the recent Bitcoin ETF frenzy that showed high interest by institutional investors.