Santiment: Stock market FOMO signals capital may soon return to crypto

On-chain analytics platform Santiment has suggested that the recent outperformance of stocks compared to cryptocurrencies indicates an excessive shift in crowd sentiment, and that capital could soon flow back into the crypto market. The platform noted that capital tends to move from crypto to stocks when equities offer higher returns and lower volatility. This trend becomes particularly pronounced when Bitcoin fails to sustain upward momentum despite long-term positive catalysts like ETF launches and institutional participation. However, Santiment argued this pattern is not permanent. The current discourse, with influencers highlighting the superiority of stocks, is a signal of excessive stock-related FOMO (fear of missing out) and crypto-related FUD (fear, uncertainty, and doubt). The market typically moves contrary to the expectations of the majority of traders, the firm added.