"'Extreme fear' sentiment may actually be a signal of a market rebound"

Cryptoassets (cryptocurrencies), led by Bitcoin (BTC), have plunged recently, sharply worsening investor sentiment toward the sector. Some, however, say this trend could be a signal pointing to the possibility of a short-term rebound.

According to Cointelegraph, a crypto-focused outlet, on the 31st (Korea time), crypto analytics firm Santiment said in a report that "negative sentiment on social media (SNS) is spreading, but that is actually encouraging," adding that "the current sentiment metric is one of the few bullish signals."

On the day, Alternative’s 'Crypto Fear & Greed Index'—a gauge of investor sentiment in the crypto market—stood at 20, remaining in the 'Extreme Fear' zone.

Santiment explained that "historically, the crypto market has often moved in the opposite direction of public expectations," adding that "there have been many cases where prices rebounded when the majority of investors anticipated further declines."

Views among industry experts are split over the latest selloff.

Prominent crypto analyst Benjamin Cowen said that while precious metals such as gold and silver have surged recently, it is unlikely that funds will shift from the precious-metals market into the crypto market.

There is also optimism based on industry trends. Shan Aggarwal, Chief Business Officer (CBO) at Coinbase, said that traditional finance players such as Mastercard, PayPal, American Express and JPMorgan are expanding hiring for crypto-related roles, adding that "while market sentiment is subdued, positive signals are being detected across the industry."

Meanwhile, as of 3:15 p.m. on the day, Bitcoin was trading at $83,848, up 1.53% from the previous day, according to CoinMarketCap.