Bitcoin has fallen below the $87,000 level following a post-Christmas rally which has brought back optimism in the crypto market. As per data provided by SantimentBitcoin has fallen below the $87,000 level following a post-Christmas rally which has brought back optimism in the crypto market. As per data provided by Santiment

Bitcoin Slides Below $87K as FOMO Gives Way to Renewed Market Caution

Bitcoin has fallen below the $87,000 level following a post-Christmas rally which has brought back optimism in the crypto market. As per data provided by Santiment, a firm tracking crypto market sentiment and chain data, the recent price rally has coincided with a sharp rise in fear of missing out, only for market sentiment to cool down quickly with prices. This has reflected a weak sentiment among traders, with Bitcoin struggling to retain positive momentum.

Post-Holiday Rally Fades Quickly

After the Christmas holiday, Bitcoin transiently bounced back above $90,000, provoking another wave of positive sentiments on all social media platforms.

Unfortunately, the price action could not sustain itself, as the values slid back underneath $87,000 shortly afterwards. According to data from Santiment, the price increase took place when the levels of negative sentiments and FUD (fear, uncertainty, and doubt) were unusually high.

Source: Santiment

As prices decreased, there were changes in market behavior too. The market players who had been following the rise appeared to have taken a step backward, leading to a more cautious market environment.

Also Read: Bitcoin Yearly Wrap: Every Major Move Bitcoin Made in 2025

FOMO Peaks as Prices Stall

According to the social sentiment metrics by Santiment, the positive social sentiment skyrocketed around the peak, driven by the intensified anticipation for another breakout. The optimistic sentiment was accompanied by retail participation, which is usually witnessed at temporary price peaks.

Source: Santiment

After failing to sustain levels above $90,000, the change in sentiment was swift. Traders who had recently joined the market began scaling back their holdings, pushing the further cooling of sentiments in the market.

Traders Return to Defensive Positioning

Now that Bitcoin is trading below $87,000, Santiment has found that market sentiment has moved back to more or less neutral levels. This data implies that market participants have started to take a ‘wait and watch’ approach.

This reformed caution also raises concerns over leverage, liquidity, and the sustainability of recent rallies. Although overall faith in BTC has not been shaken, the short-term sentiment seems damaged.

Volatility Remains a Defining Theme

The drastic increase and decrease reflect the continued volatility of Bitcoin, which remains sensitive to sentiment-driven flows as opposed to fundamental market movements. The rapid transition between FOMO and fear continues to dictate market movements in the near term.

Some analysts have indicated that, in the meantime, until market sentiment settles, Bitcoin is likely to remain range-bound with traders focusing on on-chain metrics for the next breakout.

Also Read: Bitcoin Speculation Grows After Michael Saylor’s “Back to Orange” Message

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