Crypto Sentiment Exits Extreme Fear as Bitcoin Stays Sub-$90K
A widely followed gauge of cryptocurrency market sentiment moved out of “extreme fear” on Friday, reaching its highest level in 21 days, even as Bitcoin remained below $90,000.
The index, which tracks overall crypto market mood, posted a “fear” reading of 29 in Friday’s update, its strongest level since Dec. 12. Bitcoin (BTC) traded at $88,995 at the time of publication.
Risk-reward backdrop draws attention
“Risk/Reward is the best it has ever been,” crypto entrepreneur Brian Rose said in a Dec. 28 post on X, noting the index has spent eight weeks in fearful territory. He added this stretch is “even longer than the April 2025 crash,” referring to the sell-off that followed then–U.S. President Donald Trump’s announcement of global trade tariffs.
Traders often monitor sentiment gauges to assess market positioning and inform entry and exit decisions. Periods of fear can indicate potential buying opportunities, while a tilt toward greed may signal profit-taking. The Crypto Fear & Greed Index has been in fearful territory since the beginning of November. Source: alternative.me
Sentiment remains mixed heading into 2026
Analytics firm Santiment characterized market participants’ outlook as “mixed emotions” heading into 2026. The firm noted some investors are reflecting on losses, while others highlight gains and continued community engagement. Santiment added that signs of recovery are evident as holders report profits and ongoing conviction, with events and giveaways supporting activity despite recent volatility.
Additional metrics indicate a risk-off stance
On Friday, the CoinMarketCap Altcoin Season Index registered a “Bitcoin Season” score of 23 out of 100, pointing to relatively low risk appetite among investors.
The index shifts between “Bitcoin Season” and “Altcoin Season” based on the performance of the top 100 altcoins versus Bitcoin over the prior 90 days.
According to CoinMarketCap, within the top 100 cryptocurrencies, Sky (SKY) recorded the largest seven-day decline at 9.73%, while Story (IP) posted the biggest gain with a 53.47% increase.
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