Extreme Crypto Fear Could Signal Rebound, Says Santiment
Crypto market sentiment has fallen to its lowest levels in a year, which could indicate a potential recovery, according to analytics firm Santiment. In a report published Friday, Santiment said extreme negativity across social media is one of the few strong bullish indicators currently visible, noting the ratio of bearish to bullish comments is heavily skewed toward fear.
The Crypto Fear & Greed Index showed “Extreme Fear” at 20 on Saturday, signaling heightened caution among investors. On Friday, the index reached 16, its lowest level in 2026 and the first time it has touched that mark since Dec. 19. It slipped back into “Extreme Fear” on Thursday after remaining in “Fear” territory since Jan. 20.
Sentiment may be setting the stage for a rebound
Santiment added that crypto markets have historically tended to move against prevailing crowd expectations. When a majority expects prices to fall further, it can often precede a reversal.
The Crypto Fear & Greed Index posted an “Extreme Fear” score of 20 in its Saturday update. Source: alternative.me
The remarks come as Bitcoin (BTC) has declined nearly 7% over the past week, while Ether (ETH) is down more than 9%, trading at $83,950 and $2,690, respectively, according to CoinMarketCap.
Bitcoin is down 4.13% over the past 30 days. Source: CoinMarketCap
Bitcoin has not traded above the psychological $100,000 level since Nov. 13. The extended consolidation below that mark has prompted some analysts to question whether the crypto market has transitioned into a bearish phase.
Executive says weak sentiment is “just a blip”
In a video published Thursday, crypto analyst Benjamin Cowen said expectations for a “massive rotation” from metals such as gold and silver into crypto may be misplaced, adding that a rotation into Bitcoin is “probably not going to happen” in the short term.
Others pointed to industry developments as a sign current sentiment could be temporary. Coinbase chief business officer Shan Aggarwal said in an X post on Friday that despite sentiment being “down,” “the signals are there if you’re paying attention,” citing crypto-related job postings at traditional financial firms including MasterCard, Paypal, American Express and JPMorgan. “Just a blip, we’re just getting started,” Aggarwal said. Bitwise CEO Huntley Horsley added in an X post the same day, “The space is hurtling toward the mainstream.”
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