Crypto sentiment platform Santiment suggests that the current atmosphere of ’extreme fear’ in the crypto market could foreshadow a positive turnaround.

In their latest report, they noted, “This sentiment data is currently one of the few strong bullish signals available. A silver lining is the extreme negativity on social media. The ratio of bearish to bullish comments is heavily skewed toward fear.”

As of Saturday, the Crypto Fear & Greed Index indicated a score of 20, marking an extreme fear level. This score dropped to 16 the previous day, representing the lowest level of fear observed this year.

Santiment emphasizes that such fear often precedes market recoveries: “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.”

Despite the downturn—Bitcoin reportedly fell by nearly 7% over the last week and Ethereum decreased by more than 9%, now priced at $83,950 and $2,690, respectively—there are indications of lingering opportunity. Benjamin Cowen, a crypto analyst, remarked that the anticipated movement of capital from traditional assets like gold into crypto may not happen soon. Conversely, Shan Aggarwal, chief business officer at Coinbase, pointed out that, even if sentiment seems low, significant indicators for recovery are present if one looks closely.

As Aggarwal stated: “Just a blip, we’re just getting started.”

The Crypto Fear & Greed Index
Source: alternative.me