Crypto sentiment has fallen to its worst level in more than eight months, while ongoing macroeconomic uncertainty continues to unsettle market participants.
However, cryptoanalysts predict that the bearish mood will be short-lived.
Crypto fear and greed Indexwhich measures overall market sentiment, posted an “Extreme Fear” rating of 10 in its Saturday update, the lowest it has seen since February 27, as Bitcoin (BTC) fell below $95,000 on Friday and has yet to recover above $96,000 at press time, according to on CoinMarketCap.
February’s lows came just days after spot Bitcoin ETFs recorded their worst-ever one-day outflows of $1.14 billion, as Bitcoin fell from $102,000 at the start of the month to $84,000.
Indicators suggest the market is less bearish than previous declines
Crypto market participants use sentiment indices to gauge the broader market’s sentiment toward the sector and inform their decisions about whether conditions are favorable for buying or selling.
However, Bitwise’s European head of research, Andre Dragosh, argued that the situation is not as bleak as it may seem compared to past downturns.
“Sentiment index falls, but less than during previous corrections despite lower prices”, Dragosh he said in X’s post on Friday, pointing to Bitwise’s crypto sentiment index showing signs of a reversal.
“Our crypto asset sentiment index also continues to show positive divergence,” Dragosh said.
Although U.S. President Donald Trump recently signed legislation ending the longest government shutdown in U.S. history, an event that some crypto market participants blamed for recent volatility, uncertainty remains over the U.S. central bank’s decision to cut interest rates, which is often associated with the crypto market.
Bitcoin Chart Signals “Potentially Positive” Move Forward
Meanwhile, NorthmanTrader founder Sven Henrich told his 503,400X followers on Friday that the Bitcoin price chart is showing “something potentially positive” for Bitcoin bulls. “Declining Wedge, Positive Divergence”, Henrich he said.
Research Manager Messari, known online as “DRXL”, he said that in his eight years of working in the crypto industry, he had never seen “such a mismatch between headlines and sentiment.”
Related: ‘We’re buying’: Michael Saylor refutes reports of Strategy dumping BTC
“Everything we once dreamed about is happening, but somehow it seems … over,” he said.
Some analysts see the lack of growth at the end of the year as a healthy sign. Bitwise’s chief investment officer Matt Hougan recently told Cointelegraph that “the biggest risk was (if) we jumped at the end of 2025 and then pulled back.”
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