Bitcoin’s recent rally, surpassing $94,000 on Wednesday, has ignited enthusiasm among retail traders. As predictions of the cryptocurrency hitting the $100,000 mark proliferate on social media, investment analysts are advocating for cautious optimism.
In a statement shared on X (formerly Twitter), analytics firm Santiment warned about the potential pitfalls of this surge in retail interest. “$100K could very likely arrive in the near future,” the firm noted, “but it typically won’t happen until the emojis calm.”
Following Bitcoin’s surge above $94.2K Wednesday, @santimentfeed data showed that FOMO began pouring in from retail traders. This crowd reaction typically leads to tops. $100K could very likely arrive in the near future, but it typically won’t happen til the emojis calm. https://t.co/KPiUTkyCWw
— Santiment (@santimentfeed) April 25, 2025
The comment was a quote from analyst Maksim, who expressed skepticism about the rapid rise in bold price forecasts, stating, “$100K by week’s end? Not so fast. Patience > hype.”
Data from Santiment reveals a notable increase in fear of missing out (FOMO) among retail investors, a trend often associated with market peaks, indicating a possible upcoming correction.
Retail FOMO Intersects with Whale Accumulation
The recent surge in Bitcoin’s price has attracted significant attention from retail investors. Santiment attributes this FOMO behavior to a common phenomenon seen around local market peaks, where novice traders often chase after hype.
This collective sentiment can lead to heightened volatility, especially following a period of relative calm.
Notably, retail interest had waned recently amid broader economic uncertainties, making this resurgence a dramatic shift in sentiment.
However, retail activity isn’t the sole force influencing the market. Santiment’s findings also indicate that large holders—the so-called whales—have been amassing substantial amounts of Bitcoin over the past month.
Bitcoin’s value has jumped +11.2%, and this has once again coincided with key whales & sharks adding on to their already enormous bags. Wallets holding 10-10K $BTC have added 19,255 more coins in this short stretch, and continue to be one of crypto’s most powerful indicators. pic.twitter.com/b3TiVd71iD
— Santiment (@santimentfeed) April 25, 2025
Wallets containing between 10 and 10,000 BTC have collectively increased their holdings by over 19,255 BTC in a short timeframe, and since March 22, have acquired more than 50,000 BTC in total. These major holders now command over 67% of the total Bitcoin supply.
This degree of accumulation is often viewed as a precursor to significant market rallies, especially as these investors tend to be early adopters with strong convictions.
The coinciding activity with Bitcoin’s 11.2% increase from April 21 to April 25 further supports a bullish outlook.
Investor sentiment has also been bolstered by data from CryptoQuant, which indicates that Bitcoin netflows to exchanges have dropped to the lowest level since February 2023.
The highest Bitcoin outflow from exchanges since February 2023
“A review of historical patterns suggests that this could imply re-accumulation of assets by investors.” – By @CryptoOnchain
Read more https://t.co/YP85SFVlVJ pic.twitter.com/uEOT0czYZH
— CryptoQuant.com (@cryptoquant_com) April 24, 2025
This represents the largest BTC outflow from exchanges in over two years, signaling that investors are increasingly opting for long-term asset storage.
Such outflows reflect a tendency among investors to hold rather than sell their BTC, and historically, such behaviors have preceded price appreciation. CryptoQuant emphasized that these re-accumulation trends echo earlier bullish cycles, suggesting that investors may be preparing for a sustained rally.
Rising Optimism Accompanied by Caution
While the combination of retail enthusiasm and whale accumulation propels Bitcoin’s upward trajectory, there are emerging indicators that signal a potential near-term pullback.
A key indicator is the Fear & Greed Index, which surged to 72 on April 23, its highest level in more than two months.
As of April 25, the index has slightly receded to 60 but continues to reflect a “Greed” sentiment.
This change follows a robust performance from Bitcoin, which is currently trading around $93,289.
Technical analysis indicates a bullish position in the short term, with the relative strength index (RSI) sitting at 66.10—approaching oversold territory but still allowing room for gains. Bollinger Bands are widening, which indicates increased market volatility. Resistance is noted at $95,091.87, while significant support is observed at $87,724.
Nonetheless, skepticism persists among some analysts. Markus Thielen from 10x Research voiced concerns, pointing out that stablecoin minting indicators have not shown strong activity, an essential signal for confirming lasting market increases.
Despite these reservations, bullish sentiments remain among other analysts. Michaël van de Poppe from MN Trading Capital suggested that sustained buying momentum could push Bitcoin to achieve new all-time highs.
Fairly normal to have a slight correction here on #Bitcoin as it’s just had a massive breakout.
Buyers likely going to step in and then we’ll be continuing our path towards a new ATH. pic.twitter.com/mIh1qTQhdv
— Michaël van de Poppe (@CryptoMichNL) April 24, 2025
This outlook is supported by a robust appetite from institutional investors, as U.S. spot Bitcoin ETFs reported $2.68 billion in net inflows over the past week—marking their third-best week since debuting in January. Such inflows are often seen as strong indicators of enduring market strength.
According to an ARK Invest report, Bitcoin could potentially reach price levels as high as $2.4 million by 2030 under its most favorable scenarios. Even the moderate adoption baseline suggests BTC could reach $300,000 in the coming years.
Bitcoin’s dominance in the market remains strong, currently at 64.29%, while altcoins lag significantly behind. CoinMarketCap’s altcoin season index rests at just 17 out of 100, highlighting Bitcoin’s continued supremacy in investor interest.
Although Bitcoin remains above $92,000 and holds steady above the 100-hour simple moving average, it is facing challenges breaking through the $94,500 resistance level. A supporting bullish trend line at $93,100 may provide backing should the price face short-term declines.
Success in exceeding the $94,500 barrier could spark a further rally, but failure to do so might result in a correction to $91,200.
The dynamic between short-term retail enthusiasm and intense long-term accumulation by institutional investors creates a compelling narrative for the future of Bitcoin. While both technical and fundamental indicators hint at further potential growth, the current atmosphere of speculation and elevated greed suggests the need for a tempering phase before the next significant upswing.
The post Retail Frenzy as Bitcoin Hits $94K: Santiment Warns of FOMO — Is a Correction Looming? appeared first on Finance Newso.
