Santiment Revealed: “Small Investors Started Selling These Three Cryptocurrencies, Market Moves Contrary to Expectations”

Cryptocurrency analysis firm Santiment has argued that retail investor behavior in Bitcoin, Ethereum, and XRP points to a possible recovery following the recent sharp decline in the markets.

According to the company’s data, there has been a significant wave of panic selling in small investor wallets in recent days.

Santiment defines the small investor category based on wallets with low total balances. Accordingly:

• Bitcoin wallets under 0.01 BTC sold 0.36% of their assets in the last 5 days.
• Ethereum wallets under 0.1 ETH sold 0.90% of their assets in the last month.
• XRP wallets with less than 100 XRP have shed 1.38% of their balance since the beginning of November.

Santiment argued that historically, prices tend to move in the opposite direction to small wallet behavior, adding that “continued panic selling by retail investors could be a positive signal for the market’s recovery.”

On-chain analytics firm Glassnode also highlighted the level of selling pressure in the market. According to the company’s data, realized losses by short-term investors have increased dramatically, reaching $427 million per day on the 7-day moving average. This figure is the highest level of loss since the Great Depression of November 2022.

Glassnode argued that panic selling has peaked, exceeding the losses from the previous two major lows of this cycle, indicating that the market may be in a “capitulation phase.”

*This is not investment advice.

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