A new report on sentiment in the crypto sector indicates that the market recovery has not had an equal impact on all cryptocurrencies, but retail excitement is rising and risk appetite growing.
What Happened: In a detailed post on X on May 2, on-chain analytics provider Santiment shared how Bitcoin’s rebound to the $94,000–$96,000 range has reignited market-wide enthusiasm.
Total crypto market capitalization has jumped 10% in the final eight days of April, driven by retail momentum.
However, Bitcoin’s modest 7% gain over that period suggests capital is rotating into altcoins and meme coins, a classic risk-on signal often seen during the late stages of crypto rallies.
This pattern echoes post-FTX recoveries, where Bitcoin leads early, then stalls as traders chase bigger gains in speculative names.
Santiment warns that while ETF narratives may prolong the rally, sentiment-fueled surges often reverse sharply.
“Greed-driven markets can create several short-term gains to test your resolve in profit taking,” the report cautioned, highlighting overconfidence can quickly become a liability.
As the market enters May, the key question is whether altcoins can sustain the momentum or if this is just another hype-driven spike destined to fade.
Also Read: Bitcoin Is A Commodity Like Gold, Says Commerce Secretary Lutnick
Why It Matters: Santiment points to key asset narratives highlighting the crypto market’s changing sentiments towards them.
- Bitcoin BTC/USD: It has rebounded sharply after early-April bearish sentiment, flipping social sentiment from fear to renewed fear of missing out. Now making up 25% of crypto discussions, with more positive commentary than negative.
- Ethereum ETH/USD: While lagging in price and attention, sentiment is turning bullish, aided by KOL support and renewed commentary from Vitalik Buterin. ETH’s social dominance remains low (6–7%), down from historical norms near 10%.
- XRP XRP/USD: Traders are increasingly bullish due to rising odds (85%) of an XRP spot ETF approval. Despite a price dip, optimism remains strong, fueled by institutional interest and ETF expectations. Grayscale and Bitwise have lined up to launch XRP-based funds attracting significant interest in the altcoin.
- BNB BNB/USD: After strong gains in Feb–Mar due to Binance’s support and Trump-related rumors, excitement has waned. Social buzz is down, but a new Trump–CZ partnership could revive attention.
- Solana SOL/USD: Underperformed in price and interest over the last three months. Despite brief spikes, possibly amplified by bots, overall attention is fading. Still, talk of a SOL ETF and bullish market positioning keep it in the spotlight. The asset is currently taking up about 4.4% of all crypto discussions but was hovering at between 6–7% back in January and February.
- Dogecoin DOGE/USD: ETF filings from 21Shares and Bitwise have significantly boosted sentiment and legitimacy. Nasdaq filed a key document with the SEC to list the 21Shares Dogecoin ETF, marking an important step in mainstream adoption. Social dominance hit a 3-month high, with whale accumulation and bullish momentum building.
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