Crypto Markets Emerge From 18-Day Fear Grip as Sentiment Shows Early Recovery Signs

Crypto winter thaws as market sentiment climbs out of extreme fear territory.

The Turning Tide

After eighteen straight days of maximum panic, digital asset markets finally show signs of life. The Fear & Greed Index—that emotional barometer traders watch like hawks—has broken its downward spiral. Investors who've been holding their breath since the last major correction are starting to exhale.

Green Shoots Emerge

Bitcoin and major altcoins are posting modest gains as buying pressure slowly returns. Trading volumes are ticking upward while volatility metrics suggest the worst of the selling pressure has passed. Market makers are cautiously increasing liquidity after weeks of defensive positioning.

Institutional Interest Returns

Whale wallets are accumulating again after the prolonged fear period created attractive entry points. Options markets show renewed interest in call positions, while funding rates normalize across perpetual swap markets. Even traditional finance players—who typically panic at the first sign of crypto turbulence—are dipping toes back in.

The sentiment shift comes as no surprise to veterans who've seen this movie before. Extreme fear readings historically mark local bottoms, though whether this proves temporary relief or sustainable recovery remains the billion-dollar question. Markets move faster than traditional finance bureaucrats can regulate them—which explains why your portfolio manager still doesn't get it.

A decline in crypto market sentiment poses a threat to Bitcoin’s dominance

Analyst Matthew Hyland shared a report dated November 15, which noted that the Crypto Fear & Greed Index had recorded the “most extreme fear level” throughout this cycle. According to him, such a situation for bitcoin dominance could be quite tough.

Just a few days after Hyland’s findings were made public, analyst crypto Seth released a statement on November 23 highlighting that “Extreme Fear is an understatement.” Since then, other indicators have begun to spark hope in the industry, suggesting that market sentiment may be improving.

Regarding the progress in the Bitcoin market, Santiment, a comprehensive market intelligence platform for cryptocurrencies, reported on Wednesday, November 26, that the cryptocurrency demonstrated a generally positive attitude. At this time, its price had climbed to almost $92,000, based on their social media bullish-to-bearish sentiment indicator.

Following the release of this information, Santiment noted that discussions about BTC on social media are primarily centered around its price fluctuations and activities conducted by key investors, such as ETFs and treasury purchases. 

However, even with this assertion, investors participating in the crypto market appeared to practice caution in their spending and adapted moves that avoided risks.

This strategic MOVE is reflected in CoinMarketCap’s Altcoin Season Index. Here, investors encountered a strong “Bitcoin Season” with a score of 22 out of 100. The score indicated a shift between the Altcoin and Bitcoin seasons. 

On the other hand, Bitwise Europe’s research leader, André Dragosch, mentioned on Friday, 28, that Bitcoin’s price appeared unusual because several individuals are misinterpreting the general economic conditions. This happens in the face of mounting concerns regarding a possible recession. “The last time I saw such an uneven risk-reward was during COVID,” Dragosch noted.

Scott Bessent assures Americans that a recession is unlikely to happen next year 

Dragosch earlier expressed his belief that Bitcoin will experience a significant rise in value, arguing that its current price does not align with what they expects for the economy in the future.

Regarding his claim of an uneven risk-reward during the COVID-19 pandemic, the head of research recalled that the fear of a global pandemic, which started in March 2020, sent Bitcoin’s price crashing. 

Therefore, according to Dragosch, Bitcoin’s current circumstances are similar to the extreme risk-reward situation encountered during the COVID crisis.

Bitcoin now appears to exhibit the most pessimistic global growth outlook since 2022, when it was significantly impacted by the harsh monetary policies of the US Federal Reserve and the collapse of the FTX crypto exchange, he said.

Dragosch further explained that Bitcoin is essentially adopting a slow-growth economy and has already taken into account a significant amount of the negative news. 

In the meantime, United States Secretary of the Treasury Scott Bessent assured Americans that there is no prospect of a recession coming in 2026.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.