A widely followed crypto market sentiment indicator has climbed out of “extreme fear” territory as of Friday, reaching its highest level in 21 days even as Bitcoin continues to trade below $90,000.
The index, which tracks overall sentiment across the crypto market, posted a “fear” reading of 29 in its latest update. That marks its strongest level since Dec. 12, signaling a modest improvement in market confidence.
Bitcoin was trading at $88,995 at the time of publication.
The uptick in sentiment has been welcomed by the crypto community, with some analysts suggesting that the prolonged period spent in “fear” or “extreme fear” could indicate the market is approaching a potential rebound.
‘Best risk-reward ever,’ says Brian Rose
Crypto entrepreneur Brian Rose described the current setup as unusually favorable, noting in a Dec. 28 post on X that the sentiment index has remained in fearful territory for eight consecutive weeks.
“Risk/reward is the best it has ever been,” Rose wrote, adding that the stretch of negative sentiment is longer than the downturn following US President Donald Trump’s announcement of global trade tariffs during the April 2025 market crash.
Sentiment indicators are commonly used by traders to gauge broader market psychology and inform buy or sell decisions. Periods of heightened fear are often viewed as potential buying opportunities, while a shift toward greed can serve as a signal to take profits.
Crypto analytics platform Santiment said market participants heading into 2026 are experiencing “mixed emotions.”
“Some mourn personal losses, while others celebrate crypto gains and community resilience,” Santiment said. “The market is showing early signs of recovery, as holders express pride in profits and continued commitment. Events and giveaways are also boosting engagement, reflecting optimism despite recent challenges.”
Other indicators point to a risk-off environment
Additional market metrics suggest traders remain cautious. On Friday, the CoinMarketCap Altcoin Season Index registered a “Bitcoin Season” reading of 23 out of 100.
The index shifts between “Bitcoin Season” and “Altcoin Season” based on the relative performance of the top 100 altcoins compared with Bitcoin over the past 90 days.
CoinMarketCap data shows that Sky (SKY) posted the steepest decline among the top 100 cryptocurrencies over the past week, falling 9.73%, while Story recorded the largest gain, rising 53.47%.
