Cryptocurrency sentiment has fallen to its most fearsome levels in over eight months, as persistent macroeconomic uncertainty continues to unsettle market participants.
However, cryptocurrency analysts expect the bearish mood to be short-lived.
Fear and greed in cryptocurrencies indexBitcoin, which measures overall market sentiment, posted a “severe fear” score of 10 in its update on Saturday, the lowest it has seen since February 27, as Bitcoin (Bitcoin) fell below $95,000 on Friday and has yet to recover above $96,000 at press time, According to To Coin Market Cap.
The February low came just days after spot Bitcoin ETFs saw their worst-ever single-day outflows of $1.14 billion, as Bitcoin fell from $102,000 at the start of the month to $84,000.
Indicators point to the market being less bearish than previous recessions
Cryptocurrency market participants use sentiment indicators to measure broader market sentiment towards the sector and inform their decisions on whether conditions favor buying or selling.
However, Andrej Dragosh, head of European research at Bitwise, said the situation is not as bleak as it might seem when compared to previous recessions.
“The sentiment indicator is bearish but lower than during previous corrections despite lower prices,” Dragosh He said in a post by
“Our Crypto Asset Sentiment Index also continues to show positive divergence,” Dragosh said.
While US President Donald Trump recently signed a bill ending the longest government shutdown in US history, an event that some cryptocurrency market participants have blamed for recent volatility, uncertainty remains around the US Federal Reserve’s interest rate cut decision, which is often associated with the cryptocurrency market.
Bitcoin chart indicates a “potentially positive” move forward
Meanwhile, NorthmanTrader founder Sven Henrich told his 503,400X followers on Friday that the Bitcoin price chart shows “something potentially positive” for Bitcoin bulls. “Down wedge, positive divergence,” Heinrich He said.
Research director at Messari, known online as “DRXL” He said That in his eight years in the cryptocurrency industry, he had never experienced “such a dissonance of headlines and sentiment.”
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“Everything we once dreamed of is coming true, and yet somehow it seems… over,” he said.
Some analysts believe No increase at the end of the year As a sign of health. Matt Hogan, chief investment officer at Bitwise, recently told Cointelegraph that “the biggest risk was… [if] “We got to the end of 2025 and then we got a pullback.”
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