Most bulls had a bleak start to the year, as the market resembled a slaughterhouse, with fall after crash that caused a great damage on investors' spirits.
Feelings may not appear to be significant in the crypto-sector, but they can often signal a shift in fortunes. It's now time to examine the top 2 crypto-assets.
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Despite mild rallies, traders have been opting for caution, according to the crypto-analytics platform Santiment, as fear still hangs heavy in the air.
At press time, both Bitcoin and Ethereum were in the "Fear Zone" with weighted sentiment below -0.5.
While this may sound pessimistic, Santiment warned investors that negative sentiment can sometimes lead to a price increase.
Bitcoin's price has risen 6.07% in the last 7 days, according to CoinMarketCap. This was 4.88% for Ethereum.
However, more data are required to fully comprehend how feelings convert into activities. One way to do this is to look at velocity.
On the 29th of January, Bitcoin's velocity was around 0.044, indicating that the asset's activity had returned to levels last seen in November 2021, just before the crash.
However, when compared to the September 2021 spikes, levels are still low.
In the case of Ethereum, we can see that the velocity on January 29th was around 0.020. This followed a large rise a few days prior.
However, it's worth noting that, when Ethereum's price rose, velocity began to decline rapidly once more. This could indicate that investors are not making rash decisions.