Nothing quite captures crypto's emotional whiplash like Bitcoin (BTC) right now. Six weeks ago, traders were mapping out routes to $170,000 after BTC touched $125,800. Today, those same voices are warning about $40,000.

The Sentiment Collapse

According to on-chain data provider Santiment, the mood has soured dramatically. Bitcoin now dominates social conversations, but instead of moon talk, everyone's fixated on how much further it could fall. The 28% drawdown below $90,000 has unleashed fresh bear-market calls from traders, influencers, and even institutions.

Here's the twist though: "buy the dip" mentions just surged to an eight-month high. That sounds bullish, except history suggests otherwise. Real rebounds typically don't start while dip-buying confidence remains elevated. True capitulation happens when optimism collapses and fear peaks, not when everyone's still trying to catch falling knives.

What the Whales Are Doing

Large holders have been driving the action. Wallets holding 10 to 10,000 BTC dumped 77,120 BTC last week, roughly 0.44% of total supply, which accelerated the selloff. Retail investors are holding on despite the panic, but the whales were clearly heading for the exits.

Until now, maybe. Santiment's data shows something interesting: whale activity is flashing an early shift. Over the past week, large holders executed over 102,900 transactions above $100,000 and more than 29,000 transactions above $1 million. This is on track to be the most active whale week of 2025.

The crucial detail? The same group that spent weeks net selling is now showing initial signs of accumulation. Large players might be positioning ahead of a potential reversal, even as the crowd spirals into fear.