Bitcoin Market Analysis: Sentiment Suggests Worst Selling May Be Over

The Bitcoin market has been experiencing a downturn since its peak in late May, with the price currently trading at around $62,400. According to recent data from Santiment, crowd sentiment was most bullish at the highs and most bearish at the lows, which is the inverse of where conviction historically pays.

This pattern suggests that the worst of the selling may be closer to over than beginning. However, the ETF outflow streaks have only recently paused, with a net inflow of $3.05 million in Bitcoin ETFs and $19.30 million in Ether ETFs. These numbers are not significant enough to suggest a regime change.

The upcoming nonfarm payrolls report on Friday is expected to have a binary effect on the crypto market. A soft print would revive Federal Reserve rate cut expectations, potentially taking risk assets back up. On the other hand, a hot print would extend the rate hike narrative and add further pressure to the market.