Crypto market sentiment reaching a year-low could be one of the few signs of a potential rebound, according to crypto analytics platform Santiment.
“This sentiment data is currently one of the few strong bullish signals available,” Santiment said in a report on Friday. “A silver lining is the extreme negativity on social media. The ratio of bearish to bullish comments is heavily skewed toward fear,” Santiment said.
The Crypto Fear & Greed Index, which measures overall crypto market sentiment, posted an “Extreme Fear” score of 20 on Saturday, indicating that investors are cautious about the crypto market. On Friday, the index recorded an “Extreme Fear” score of 16, the lowest in 2026 and the first time it had reached that level since Dec. 19.
It fell back into “Extreme Fear” on Thursday after being in “Fear” territory since Jan. 20.
Crypto sentiment level may be setting “stage for a rebound”
Santiment said the lingering fear in the market may signal that a reversal is on the cards.
“Historically, crypto markets move in the opposite direction of the crowd’s expectations. When the majority is convinced prices will go lower, it often sets the stage for a rebound,” Santiment said.
The comments come as Ether (ETH) is down more than 9%, trading at $2,690, while Bitcoin (BTC) has fallen nearly 7% over the past seven days, trading at $83,950, according to CoinMarketCap.
Bitcoin has not traded above the psychological $100,000 level since Nov. 13, with the prolonged consolidation below the level prompting analysts to question whether the crypto market has entered a bear phase.
Crypto market sentiment is just in “a blip,” says executive
Crypto analyst Benjamin Cowen said in a video on Thursday that the strong expectation of a “massive rotation” from metals like gold and silver into crypto may be misplaced. He emphasized that the rotation to Bitcoin is “probably not going to happen” in the short term.
Others pointed to industry developments as a reason why current sentiment levels may 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.”
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“The legacy players are staffing up,” Aggarwal said, pointing to several traditional financial institutions such as MasterCard, Paypal, American Express and JPMorgan posting crypto-related job advertisements.
“Just a blip, we’re just getting started,” Aggarwal said. Bitwise CEO Huntley Horsley said in an X post on the same day, “The space is hurtling toward the mainstream.”
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