Why now’s the worst sentiment moment might be your best buying opportunity
The crypto market is at a fever pitch of fear and frustration right now. If you’re tempted to sell your Bitcoin amid the chaos, this article could save you from a costly mistake. We’ll break down what’s really going on behind the scenes—from recent liquidation waves to historic sentiment lows—and why this moment mirrors some of crypto’s toughest but most rewarding times. You’ll get a clearer picture of market cycles, on-chain data, and the mindset it takes to hold through volatility. Most importantly, you’ll learn why selling now might mean missing the next wealth shift.
Crypto Sentiment Hits Historic Low — Why That Matters
Sentiment in crypto right now is worse than the fallout from the FTX collapse. Experienced investors agree it’s the lowest they’ve ever seen. Yet, despite all the noise, Bitcoin is only about 15% off its all-time highs—a modest correction compared to previous market cycles.
Data from Link suggests that if you’re selling during these dips rather than buying, crypto may not be the right space for you. This extreme fear has led to huge sell-offs.
Answer Box:
Is it a good time to sell Bitcoin right now?
Given the current market dynamics, selling Bitcoin during a 15% dip amid historically bad sentiment is usually discouraged. Experienced investors recommend buying during such dips rather than selling, as these moments often precede significant price rebounds and wealth shifts.
Record Liquidations Shake Out Weak Hands
October alone has seen $25 billion liquidated from long crypto positions. Just in the last 24 hours, nearly $1 billion worth of long positions were wiped out. These liquidations primarily target traders using leverage—betting with borrowed money—which can amplify losses and force forced sales.
Bitcoin’s price dropped only 3–4%, yet the liquidation storm is unprecedented and ongoing. This cleanse of leveraged bets sets the stage for a longer-term market reset and a shift in wealth from short-term speculators to long-term holders.
Data Callout:
$25 billion in crypto long positions liquidated in October represents a major reset of speculative leverage in the market, clearing the path for more sustainable growth.
The Wealth Shift Is Coming
Market veteran voices on Twitter emphasize that the current “dump” will break the spirits of weaker hands but enables a massive coming wealth transfer. The influx of Wall Street players means price manipulation is real but also temporary.
With only 21 million Bitcoin total supply, price control is limited over time. The key is holding your position through this tough phase.
Avoid Emotional Investing
Many retail investors panic due to fear, uncertainty, and doubt (FUD), reacting to every price dip or negative headline. Following emotion-driven influencers who amplify panic only worsens your chances of success.
Instead, develop your own investment plan and stick to it. Reacting impulsively to short-term volatility will likely mean losing money.
Historical Perspective: Bigger Pullbacks Mean Bigger Opportunities
Past bull markets have seen 35–55% retracements before new highs were reached. Compared to those, Bitcoin’s current 15% dip is relatively shallow. Experienced investors from earlier cycles recall 70%+ crashes that tested their conviction but rewarded patient holders abundantly.
Learning to zoom out and focus on the long-term narrative—the adoption story, Bitcoin’s fixed supply, and fundamentals—is key to thriving through downturns.
Risks / What Could Go Wrong
- Market volatility could worsen before improving, especially with ongoing macroeconomic uncertainties.
- Regulatory crackdown remains a wildcard that could add pressure to prices.
- Psychological pressure to sell during dips is strong; failing to manage emotions may lead to losses.
- Leverage risks persist; continued forced liquidations might trigger sudden market drops.
Still, remembering that Bitcoin’s total supply is capped and the network continues growing should provide confidence despite near-term risks.
Actionable Summary
- Bitcoin is down roughly 15%—relatively mild compared to historic pullbacks.
- Extreme negative sentiment is at an all-time low, often signaling market bottoms.
- $25 billion in liquidations this month shows a cleansing of weak leveraged positions.
- Emotional selling driven by panic rarely leads to success.
- A new “wealth shift” is underway from weak hands to long-term holders.
Get the full playbook and entries in today’s Wolfy Wealth PRO brief—where we parse market signals, provide timely alerts, and build model portfolios designed to survive volatility and thrive long term.
FAQ
Q: Should I sell Bitcoin during a dip like now?
A: Historically, selling during dips driven by fear often results in missed gains. Consider buying more if your investment plan supports it.
Q: What is a liquidation event in crypto?
A: Liquidations occur when leveraged traders’ positions are forcibly closed due to price moves against them, often causing cascading price swings.
Q: How bad can Bitcoin dips get?
A: Past bull markets have seen corrections of 35–55%. Current dips (~15%) are relatively shallow by comparison.
Q: Why is sentiment important in crypto investing?
A: Extreme negative or positive sentiment often correlates with market bottoms or tops, respectively, signaling potential buying or selling opportunities.
Q: How can I avoid panic selling?
A: Develop and stick to a personal investment plan, ignore emotion-driven social media noise, and focus on the long-term fundamentals of Bitcoin.
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice. Cryptocurrency investing involves risk and is not suitable for all investors. Always conduct your own research before making investment decisions.
By Wolfy Wealth - Empowering crypto investors since 2016
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Disclosure: Authors may be crypto investors mentioned in this newsletter. Wolfy Wealth Crypto newsletter, does not represent an offer to trade securities or other financial instruments. Our analyses, information and investment strategies are for informational purposes only, in order to spread knowledge about the crypto market. Any investments in variable income may cause partial or total loss of the capital used. Therefore, the recipient of this newsletter should always develop their own analyses and investment strategies. In addition, any investment decisions should be based on the investor's risk profile
