Crypto Under Fire: The FUD Storm Surrounding Bitcoin, Ethereum, Ripple, and Solana

The cryptocurrency sector is undergoing significant fear, uncertainty, and doubt (FUD), with the sentiment surrounding various leading assets at extremely pessimistic levels.

Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL) have all experienced considerable downturns, driving traders into a state of panic; nevertheless, history indicates that a potential bottom could be approaching.

Market Sentiment Reaches an All-Time Low

Based on on-chain insights from the digital asset market intelligence platform Santiment, the broader crypto community has turned predominantly bearish after recent price declines. Since last Friday, Bitcoin’s value has plummeted sharply from a peak of $99,400 to $86,000.

Presently, the asset is trading at approximately $88,820, reflecting a 2.6% decrease in the last 24 hours. Over the past week, the cryptocurrency has dropped nearly 7%, while the decline over the preceding month is considerably steeper at 11.7%.

Its spot ETF market has not performed significantly better, with six straight days of outflows observed in the previous week. On February 24 alone, withdrawals totaled a staggering $516 million, indicating an increasing wariness among institutional investors. That figure soared to over $900 million on Tuesday.

Conversely, ETH has encountered a challenging February, slipping below the $2,400 mark. Historically, the second month of the year has always been a bullish period for the leading altcoin; however, 2025 has been an exception.

The recent Bybit breach, in which suspected Lazarus Group members absconded with an astounding $1.4 billion in crypto, Trump’s trade tariffs on Mexico and Canada, along with broader market instabilities, have led to a 25% decline in ETH this month, with the asset recently sinking to a low of $2,310.

Dismal Conditions for XRP, SOL

Meanwhile, XRP has fallen to $2.2, approaching its crucial support at $2. Market analysts have suggested that if sellers maintain their dominance, the token could test $1.6 in the upcoming days.

Similarly, Solana’s situation is not dissimilar, having been severely impacted by whale sell-offs over the past month. As reported by crypto analyst Ali Martinez, at least 135 significant holders of the asset recently liquidated their positions, contributing to its 20% weekly drop. Furthermore, given that a major token unlock is set for March 1, experts anticipate that SOL could face additional selling pressure.

Nevertheless, despite the prevailing gloom, some observers remain hopeful. According to Santiment, extreme FUD, such as the current situation, often indicates a market bottom, suggesting a possible turnaround may be on the horizon.