For Customers Log in
Contact Us

Market Sentiment Meaning

The "overall mood" or "feeling" of the market participants. It is a qualitative measure of whether people are "Bullish" (optimistic) or "Bearish" (pessimistic).

Sentiment often drives the market in the short term, regardless of the "Fundamentals." Sentiment is measured through "Fear and Greed Indexes," social media analysis, and "Funding Rates" in the futures market. If everyone is "Greedy" and talking about "Mooning," it is often a sign that the market is at a peak.

If everyone is "Scared" and selling, it is often a sign that the bottom is near. "Sentiment Analysis" is a popular field for AI.

By scanning millions of posts on X (Twitter), Discord, and Reddit, algorithms can predict "Retail Interest" before it shows up in the price. Successful contrarian investors use sentiment as a "reversal" signal: they "Buy when there's blood in the streets" and "Sell when others are greedy."

← Back to Glossary

Explore our services
Providing liquidity in the cryptocurrency market?
Authorize on our platform and do it smarter with FM Pulse.
pic

FM Marketplace

A reliable and high-performance crypto liquidity marketplace for institutions and businesses.

Learn more
pic

FM White Label

Launch your fully branded B2B crypto trading platform in under one week.

Learn more
pic

FM Liquidity Match

Crypto OTC-as-a-Service infrastructure for enhanced monetization and trade control.

Learn more

Scale your business, leave the hard work of your trading needs to us

Reduce your integration costs and operational risk across multiple access points with our platform

Get started