According to data from Santiment after rebounding into the $94,000–$96,000 range to close April 2025, Bitcoin’s modest 7% gain over the final eight days of the month sparked a 10% overall market rally, revealing a shift in investor sentiment.
Retail traders have pivoted away from Bitcoin, funneling profits into higher-risk altcoins, a trend that often signals increased market speculation.
This surge continues a pattern that’s taken hold since the FTX crash in 2023: once Bitcoin’s rally cools, speculative interest flows into smaller, riskier assets in hopes of maximizing gains.
Meme Coins Dominate As Greed Signals Flash
Meme coins are once again at the forefront of speculative hype. Social media buzz around these tokens is soaring, even as interest in Layer 1s and Layer 2s diminishes.
According to Santiment, social dominance has shifted toward meme coins—a red flag for potential market overheating.
With buzzwords like “altseason,” “bull cycle,” and “buy the dip” trending, this crowd enthusiasm suggests a greed-driven market phase, often a precursor to volatility or sharp reversals.
Traders Urged to Watch for Sentiment Shifts
Historical data shows that altcoins perform best when retail sentiment is low, not euphoric. Overconfidence can lead to sudden corrections that catch traders off guard.
As we enter May 2025, it will be critical to monitor whether the current altcoin momentum continues—or if the crowd’s FOMO turns into the next exit signal.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoins-bounce-sparks-risk-appetite-in-altcoin-markets/