Santiment: Retail investor sentiment has been positive since the start of the year; a rapid rise in Bitcoin to $92,000 could trigger FOMO.

Analysts at blockchain analytics platform Santiment noted strong sentiment among cryptocurrency market participants on social media at the start of the year, but cautioned that further upside depends on retail investors' ability to remain rational. "We need retail investors to maintain a certain level of caution, a certain level of pessimism, and a certain level of impatience," said Santiment analyst Brian Quinlivan in a YouTube video released Saturday. While other crypto sentiment indicators suggest fear among market participants, Quinlivan stated that Santiment's social media data points in the opposite direction. "The current sentiment is very positive," he said. "Usually this is somewhat worrying, but this could just be a normal post-holiday rebound." Quinlivan said he wasn't overly concerned about a "massive surge of FOMO," but added that such sentiment could flood the market if Bitcoin quickly climbs to $92,000. When market euphoria is excessive, the cryptocurrency market often moves in the opposite direction to what most people expect. Quinlivan points out that Bitcoin's rapid rise to this level will reveal "the true reaction of retail investors": "If they start pouring money in because of the 'Bitcoin rally,' that would be a negative sign." Despite historically strong January performances, the crypto market still faces fear signals. Retail frenzies in the cryptocurrency market often occur near all-time highs or cyclical peaks, and historical data shows that the market often follows with a decline.