A turnaround in the meme token segment may occur sooner than traders expect, according to Santiment.

Analysts noted that a narrative of "nostalgia" is gaining traction on social media regarding "funny coins." Many users believe the sector is definitively dead.

"This collective acceptance of the 'end of the meme era' is a classic capitulation signal. When the crowd completely dismisses a sector, it’s often the right moment to pay attention to it again," emphasized Santiment specialists.

Overall sentiment in the digital asset market remains concerning, with negative comments prevailing.

"Historically, markets move against the expectations of the crowd. This persistent distrust even during price increases is a healthy sign of potential sustainable recovery," analysts added.

According to CoinMarketCap, the market capitalization of meme coins has decreased by 56.5% over the past 12 months, dropping to $31.3 billion. Trading volume during this period plummeted by 69%.

In January, CoinGecko experts reported a record "mortality" rate for tokens in 2025, with 11.6 million coins collapsing. They linked this trend to market volatility and the collapse of the meme coin sector.

What About Bitcoin?

Following the release of unexpectedly positive consumer inflation data from the U.S. Bureau of Labor Statistics in January, the first cryptocurrency surged past $69,700 during a local rally.

30-minute BTC/USD chart from Binance. Data: TradingView.

The cooling trend in price growth in the world’s largest economy "has reignited hopes for a Federal Reserve interest rate cut in 2026," noted Santiment.

"While the immediate reaction is bullish, macroeconomic reports rarely determine long-term price trends for cryptocurrencies on their own," the experts stated.

They believe that although the momentum appears "promising," Friday's price jumps based on economic news often require confirmation of the trend at the beginning of the following week.

Santiment specialists pointed out that the drop in trading volumes indicates a state of capitulation and "analysis paralysis" among traders. This could signal the market's preparation for the next significant movement. However, continued purchases of the first cryptocurrency by retail investors suggest that the bottom has not yet been reached.

Analysts at CryptoQuant also doubted the end of Bitcoin's correction. They noted that historically, the lower boundary of a bear market is defined by the realized price of the asset, which stands at $55,000.

Standard Chartered has suggested that digital gold could drop to $50,000, while maintaining a year-end forecast for the flagship at $100,000.

Jean-David Piquet, the commercial director of the derivatives exchange Deribit, believes that Bitcoin's long-term rally has been "interrupted." A sustainable recovery will not occur until the asset rises above $85,000, he stated in an interview with CoinDesk.

On February 6, the price of the first cryptocurrency dropped to $60,000. This level, along with the 200-week moving average currently at $58,000, represents a significant support level, the expert emphasized. A drop below these values would pave the way for a deeper correction, according to Piquet.

Earlier in February, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, reiterated his forecast for a potential drop of the first cryptocurrency to $10,000 this year.

It’s worth noting that analysts at K33 Research identified $60,000 as the local bottom for Bitcoin.