Santiment: Although the crypto market sentiment is in extreme fear, it may create conditions for a subsequent rebound

DeepFlowTech · 2026-01-31T09:53:15+00:00

Santiment reports show that the crypto market sentiment indicator once dropped to 16, the lowest since 2026, and has now rebounded to 20. Bearish comments dominate social platforms, and extreme negative sentiment may lay the groundwork for a market rebound. Traditional financial institutions are still posting crypto-related job openings, and industry infrastructure continues to advance.

DeepFlowTech

2026-01-31 09:53:15

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Deep Tide TechFlow News, On January 31, the crypto data analysis platform Santiment released its latest report, pointing out that the cryptocurrency market sentiment indicator “Fear and Greed Index” briefly dropped to 16 on Friday, the lowest level since 2026, and the first time since mid-December last year that it touched this range. Currently, it has rebounded slightly to 20. Although pessimistic opinions on social platforms far outnumber optimistic ones, this extreme negative sentiment actually constitutes one of the few still valuable strong bullish signals. Historically, when the market generally expects prices to continue falling, it often creates conditions for a subsequent rebound. Persistent fear may be laying the groundwork for a market reversal. Coinbase Chief Business Officer Shan Aggarwal pointed out that despite the weak market sentiment, traditional financial institutions including Mastercard, PayPal, American Express, and JPMorgan Chase continue to release crypto-related job postings, indicating that industry infrastructure development is still progressing.

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