[Market] Crypto market sentiment back in 'Fear' phase… wait-and-see as Bitcoin moves sideways

Investor sentiment in the crypto market has been contracting again ahead of the year-end. Analysts say this is because Bitcoin's price has failed to show a clear direction and has been moving within a limited range, spreading cautious sentiment across the market.

On the 31st (local time), according to AMB Crypto, as of the 26th the total crypto market capitalization was about $2.96 trillion, and daily trading volume was about $102.94 billion. Bitcoin (BTC) moved in a box between $86,000 and $90,000, continuing a pattern in which neither gains nor losses are dominant.

The Fear and Greed Index, which reflects market sentiment, stood at 30 the same day, remaining in the 'Fear' zone. This is similar to last week's figure of 29 and somewhat improved compared to the 20 recorded a month ago. However, compared with the 76 in the 'Greed' zone recorded on May 23 this year, investor sentiment remains subdued.

That said, it has partly moved out of the extreme fear phase. The Fear and Greed Index fell as low as 10 on November 22, recording 'Extreme Fear', but has shown a gradual recovery since then. Some interpret this as the market entering a stabilization phase rather than facing further sharp declines.

Bitcoin's price has not reclaimed the psychological resistance of $90,000, but there has been no sign of increasing sharp downward pressure. According to on-chain analytics firm Santiment, social media mentions have repeatedly increased each time the price fell, suggesting that bargain-buying sentiment expecting a short-term rebound is entering the market.

These movements are evaluated as being driven more by short-term reflexive expectations than by a sustained uptrend. In fact, in recent trading sessions Bitcoin's price has failed to break out of the trading range, and the lack of direction has continued.

Total crypto market capitalization increased by about $110 billion, from about $2.85 trillion on December 18 to $2.96 trillion. This shows that defensive positions have been maintained with limited capital inflows rather than a sell-off phase, but analysts say that trading volume and trend persistence are not sufficient to interpret this as a strong upward trend.

Market participants note that in past cases extreme fear phases have often served as mid- to long-term buying opportunities. However, the current period is dominated more by a wait-and-see mentality than clear conviction, and short-term market movements are likely to be heavily influenced by sentiment indicators and changes in liquidity.