Most major coins are now in “extreme pain,” with traders sitting on heavy losses, a backdrop Santiment frames as prime buy-zone territory.
Bitcoin (BTC) has fallen below the $90,000 mark for the first time in seven months, a drop that has pulled the entire digital asset market deep into negative territory for the week.
This sharp decline has created what analytics firm Santiment identified as “extreme pain” for traders, potentially setting the stage for a prime buying opportunity for patient investors.
According to Santiment’s data, the majority of cryptocurrencies are now flashing signals of extreme negative returns for traders who have been active over the past month. Its Market Value to Realized Value (MVRV) metric, which helps identify potential buy-low zones, is showing huge losses for major assets.
Cardano (ADA) leads the pack with average trader returns at -19.7%, placing it in an “Extreme Buy Zone.” It is followed closely by Chainlink (LINK) at -16.8% and Ethereum (ETH) at -15.4%, which are also in the same zone.
Meanwhile, Bitcoin is in a “Good Buy Zone” despite being down -11.5%, alongside Ripple’s XRP at -10.2%. Santiment explained that in a zero-sum market, buying assets when the average trade returns of other market participants are deeply negative increases the probability of a rapid price recovery.
The analysis comes as the overall crypto market capitalization has fallen by 13.5% in the past week, with the mood shifting drastically from just six weeks ago, when the community was celebrating when BTC hit a new all-time high past $126,000.
As of today, the number one cryptocurrency is down by about 4.4% since the start of 2025. Market watchers have attributed the downturn to a combination of factors, including record outflows from US spot Bitcoin ETFs over three consecutive weeks and institutional selling pressure, as indicated by the Coinbase Premium hitting a nine-month low.
The current climate has naturally spawned a wave of fear and negative predictions across social media. Santiment’s deep dive into social data from November 18, 2025, noted a clear shift in trader sentiment.
While there are signs that some confidence remains, evidenced by discussions about buying the dip reaching an eight-month high, price predictions have become more bearish. Mentions of Bitcoin falling to between $40,000 and $80,000 now dominate conversations, a stark contrast to the calls for $130,000 and above during its October peak.
However, such widespread pessimism has historically been viewed as a contrarian indicator. Furthermore, the Kobeissi Letter provided some long-term perspective, reminding investors that since 2017, Bitcoin has experienced over ten declines of 25% or more, with each one eventually being followed by new record highs. They characterize the latest episode as a “routine” crypto downturn that may be closer to its end than its beginning.
