Bitcoin, Ethereum, Dogecoin Have Still Not Found A Bottom: Are Whales Feeding On Investors' 'Extreme Fear?'

Bitcoin and other major coins were trading in the red on Sunday evening as the global cryptocurrency market cap decreased 3% to $1.6 trillion.

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Why It Matters: Bitcoin and Ethereum continued to post declines alongside spurts in 24-hour trading volumes. BTC and ETH 24-hour trading volumes rose 51% and 55% respectively to $36.84 billion and $20.82 billion.

U.S. stock futures also traded in the red at press time, with the S&P 500 and Nasdaq futures down 1.1% and 1%, respectively.

Cryptocurrency trader Michaël van de Poppe noted the lack of movement in Bitcoin price with the volume “going crazy” during the weekend. He ascribed the heightened volume to a “whales game.”

Interesting, such a high volume profile and price shoots back up.

During a weekend.

Whales game.

— Michaël van de Poppe (@CryptoMichNL) May 8, 2022

The downwards movement of Bitcoin all the way to the $33,900 level is what Santiment likes to see in terms of capitulation. The market intelligence platform said that trader sentiment has fallen to six-week lows.

“Weak hands leaving the space is generally what is needed for a truly notable bounce,” tweeted Santiment. 

With #Bitcoin now having retraced all the way down to $33.9k, trader sentiment has fallen to six week lows. We typically prefer to see capitulation signs like this, as weak hands leaving the space is generally what is needed for a truly notable bounce. https://t.co/AhXOBYcN9i pic.twitter.com/9HnY89RTuF

— Santiment (@santimentfeed) May 8, 2022

Investor sentiment meanwhile has also taken a beating. Alternative.me’s “Crypto Fear & Greed” index flashed “Extreme Fear” at press time. Last week, the index indicated “Fear.”

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