Crowd FOMO-Buys Dip, Santiment Warns of ‘More Pain’ Ahead of FOMC Meeting

Santiment data analysis reveals the midterm crypto market pain may not be over. A slight market drop on Tuesday triggered over $512 million in liquidations from leveraged traders. In response, Santiment’s data now shows a high level of interest among the crowd to “buy the dip.”

Santiment warns that more pain is likely before an ultimate rebound. Historically, a high volume of dip-buying calls is a contrarian indicator. This pattern often precedes a mild short-term retrace, which is then followed by further downside pressure.

“Once their (crowd) optimism (FOMO) turns to fear (FUD), this is when we see the biggest rallies,” Santiment .

The crypto market is showing midterm bearish sentiment just hours before today’s October 29 Fed rate decision. This market uncertainty persists despite Polymarket and Kalshi showing odds of a 25 bps rate cut at over 97%.

, the Fed’s QT is likely to end on Wednesday, which is ultimately good for equities and the crypto market. Meanwhile, the macroeconomic uncertainty caused by ongoing tariff trade negotiations amid geopolitical tensions between Russia and Ukraine has caused concern of further downside risk.

The crypto market is likely to experience mid-term bearish sentiment due to the classic selling on the news impact. Notably, the crypto market’s bullish momentum may momentarily fade after the Fed initiates a 25 bps rate cut, it ends QT, and amid the ongoing listing of spot altcoin exchange-traded funds (ETFs).

Notably, several altcoins, including Solana (SOL), Litecoin (LTC), and Hedera’s (HBAR), have seen the listing of their respective spot ETFs after the U.S. Securities and Exchange Commission (SEC) approved generic listing standards before the ongoing government shutdown.

Following the liquidation of over $512 million during the last 24 hours, about $354 million involved long traders. As such, midterm leverage buyers may turn bearish to ride on the bearish wave, thus further increasing downside momentum.

The demand for crypto assets by whale institutional investors has significantly declined in the recent past. For instance, the U.S. spot BTC ETFs have recorded positive cash inflows in the last few days but significantly lower compared to earlier this year.

According to on-chain data analysis from CryptoQuant, the long-term Bitcoin holders have shed 325,600 BTC over the last 30 days.

Notably, this is the sharpest monthly drawdown since July 2025, thus further weighing down on midterm crypto bullish sentiment.