On-chain analytics firm Santiment has warned that the current market sentiment in cryptocurrencies, driven by fear of missing out (FOMO), could be dangerous. The firm noted divergences that have led to a temporary pause in the growth of Ethereum, suggesting that the market’s appetite for risk has been relatively low. Santiment also highlighted whales' behavior of reducing their Bitcoin positions, although the situation began to change after the recently concluded Shanghai fork and Ether’s move above $2,000. The firm cautioned that traders should be on the lookout for indicators such as a significant increase in retail accumulations, a decrease in stablecoin holdings, and a spike in general network activity to discern a market top.

(By Newton Gitonga)