Crypto News: Crypto Fear Index Breaks Out of Extreme Fear After Longest Stretch Since 2022

Crypto market sentiment has begun to improve after spending more than two weeks in “Extreme Fear,” according to the Crypto Fear & Greed Index, with several market indicators now pointing to a gradual shift toward a more constructive outlook for Bitcoin.The sentiment gauge posted a score of 28 (“Fear”) on Saturday, marking the first exit from “Extreme Fear” territory since Nov. 10. The move ends an 18-day stretch at the bottom of the index — a period that coincided with Bitcoin’s decline from above $100,000 to recent lows near $80,000.Analysts note extreme fear has historically aligned with market bottomsCrypto analyst Matthew Hyland was among the first to highlight the intensity of the sell-off earlier this month, calling the index’s reading the most bearish of the entire cycle. Days later, trader Crypto Seth said “Extreme Fear is an understatement,” capturing the sentiment of a market shaken by a rapid drawdown.Yet not all analysts saw the readings as purely negative. Trader Nicola Duke observed that every prior “Extreme Fear” reading in the current cycle lined up with a local bottom for Bitcoin — a pattern that appears to have repeated as BTC reclaimed the $90,000 handle.Social sentiment indicators turn cautiously bullishSentiment platform Santiment reported that Bitcoin now shows “generally bullish sentiment” across social media after recovering toward $92,000 this week. According to its bullish-to-bearish sentiment ratio, discussions have shifted from panic toward optimism, with more attention on institutional flows, ETF activity and treasury purchases.Bitcoin is trading around $90,500 as of publication.Market remains risk-off as altcoins lagDespite improving sentiment toward Bitcoin, broader crypto markets continue to show risk aversion. CoinMarketCap’s Altcoin Season Index sits at 22/100, firmly in “Bitcoin Season,” indicating that investors remain reluctant to rotate into higher-risk altcoins.The reluctance mirrors macro uncertainty. On Friday, Bitwise Europe head of research André Dragosch said Bitcoin’s price appears mispriced relative to economic conditions, noting that recession fears may be exaggerating downside risks.“The last time I saw such an asymmetric risk-reward was during COVID,” Dragosch said, arguing that the current environment could support a stronger recovery into 2026.