The cryptocurrency analytics firm Santiment has evaluated the market’s rebound following recent inflation figures and shifting sentiments within the memecoin space.
In their newest report, Santiment highlights that Bitcoin’s attempt to retest the $70,000 mark has reignited optimism that the prolonged market correction might be concluding.
The US Consumer Price Index (CPI) came in lower than anticipated at 2.4%, which adjusted expectations regarding potential interest rate reductions. This news sparked a surge in Bitcoin’s value by over 5% within a single day, pushing it back above $68,000 and challenging resistance near $70,000.
Santiment explains that rallies driven by macroeconomic developments usually need validation on Monday trading sessions. The current upswing is interpreted as a normalization after intense selling pressure earlier.
On-chain metrics reveal that whale wallets holding between 10 and 10,000 BTC have collectively acquired more than 18,000 BTC over the past four days after weeks of inactivity. Nonetheless, Santiment warns about risks tied to aggressive buying from retail investors during dips since markets often move contrary to popular sentiment.
Bitcoin’s MVRV ratio remains at -29%, indicating — according to Santiment — that accumulation is still occurring in relatively low-risk conditions. This metric suggests prices are undervalued compared to what most investors paid on average.
“Memecoins Might Be Written Off But…”
A particularly interesting insight from the report concerns memecoins. Market perception increasingly views this sector as defunct with many declaring its era finished permanently.
Santiment points out this widespread acceptance could actually signal capitulation—a classic precursor for reversal phases when an entire segment is dismissed entirely. The rising nostalgia around memecoins combined with prevailing pessimism may present opportunities for contrarian investors willing to reconsider their stance.
Data shows bearish sentiment outweighs bullish opinions with a ratio below one despite price gains—historically regarded as an indicator of healthier and more sustainable recoveries ahead.
*Please note: This analysis does not constitute financial advice.*