Crypto market sentiment has fallen to its lowest level in more than a year, a development that could paradoxically signal the potential for a rebound, according to crypto analytics firm Santiment.
“This sentiment data is currently one of the few strong bullish signals available,” Santiment said in a report released Friday. The firm pointed to extreme negativity across social media, noting that bearish commentary now far outweighs bullish sentiment—a dynamic that has historically preceded market recoveries.
The Crypto Fear & Greed Index, which tracks overall investor mood, registered an “Extreme Fear” reading of 20 on Saturday. A day earlier, the index dipped to 16, its lowest level of 2026 and the first time it has fallen that far since Dec. 19. The index had slipped back into “Extreme Fear” territory on Thursday after remaining in the milder “Fear” zone since Jan. 20.
Santiment added that persistent fear among investors may be setting the stage for a market rebound, as extreme pessimism often emerges near local bottoms.
“Historically, crypto markets tend to move against prevailing crowd expectations. When most participants are convinced prices will continue to fall, conditions often align for a rebound,” Santiment said.
The remarks come as Bitcoin has dropped nearly 7% over the past seven days, while Ether has declined by more than 9%, trading at around $83,950 and $2,690, respectively, according to CoinMarketCap.
Bitcoin has remained below the key psychological $100,000 mark since Nov. 13, with the extended period of consolidation prompting some analysts to question whether the broader crypto market may be slipping into a bearish phase.
Executives say weak sentiment may be temporary
Crypto analyst Benjamin Cowen said in a video published Thursday that expectations of a rapid “massive rotation” from traditional safe-haven assets such as gold and silver into cryptocurrencies may be overstated. He argued that a meaningful shift into Bitcoin is “probably not going to happen” in the near term.
Others, however, believe the current downturn in sentiment is short-lived and point to ongoing industry developments as evidence. Coinbase Chief Business Officer Shan Aggarwal said in an X post on Friday that while sentiment appears “down,” positive indicators are emerging for those watching closely. He highlighted increased crypto-related hiring by major financial institutions, including MasterCard, PayPal, American Express, and JPMorgan.
“Just a blip, we’re just getting started,” Aggarwal said. Echoing that view, Bitwise CEO Hunter Horsley wrote in a separate X post the same day that “the space is hurtling toward the mainstream.”
