@bunnyshunter
Market sentiment refers to the overall attitude of investors and traders toward a particular cryptocurrency or the market as a whole, often driven by news, social media, or broader economic events. Positive sentiment, such as optimism fueled by favorable news or adoption milestones, can lead to price rallies as more people buy into the asset. Conversely, negative sentiment—stemming from regulatory concerns, security breaches, or market corrections—can trigger mass sell-offs, driving prices down. Cryptocurrency markets are particularly sensitive to sentiment due to their relatively low liquidity and high volatility, meaning that shifts in sentiment can cause significant price swings in short periods. Understanding sentiment is crucial for traders, as it often precedes market movements.
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