Crypto sentiment moves up from “extreme fear” after 18-day stretch

Reports indicated that the cryptocurrency market had shown a significant psychological shift, officially moving out of the extreme fear sentiment that had been driving the market for several weeks. According to data available on November 29, 2025, the crypto Fear and Greed index reportedly rose to 28. This move signals a change towards simple fear and away from the previous sentiment of extreme fear.

As sources noted, this change followed a turbulent month marked by significant price drawdowns courtesy of market corrections, high volatility, and massive sell-offs. While the recent movement of the index is a signal that investors are gradually returning to a confident state, analysts expressed their opinion to exercise caution as the market may still be fragile and volatile.

The End of Prolonged Extreme Fear Sentiment

Sources explain that the extreme fear sentiment erupted in early November. Many factors had contributed to causing this, and one of the major factors among many was Bitcoin’s plummet from its October peak of $126,000.

The market was indeed rattled by a wave of forced liquidations, macro headwinds, and rampant profit-taking by large investors known as whales. This had created a domino effect, driving down prices of different crypto assets and pushing the crypto Fear and Greed index to its lowest level in months. Observers also noted that social media had been dominated by negative sentiment, discussing liquidations and potential crashes that had offset the year’s profits. This had shifted the “buy the dip” narrative to one that was told to be of extreme caution.

Reports highlighted that the volatility had exposed liquidity issues on some exchanges, while platforms designed for continuous availability reportedly saw heavier use. Short-term holders reportedly capitulated initially, as they exited positions at losses to avoid further drawdowns. In contrast to this behavior, long-term holders held firm initially but succumbed to selling pressure as there was a larger late-stage capitulation.

Key Indicators Point Toward Market Stability

The recent sentiment shift was reported as not being a random event but a response to several key developments that had provided a much-needed breath of relief to the market. With reports of Bitcoin stabilizing above the $90,000 mark, analysts viewed this consolidation as a healthy sign rather than a sign of future drawdowns.

The rebound followed a period of intense selling pressure and provided a solid foundation for potential future gains.

The broader macroeconomic picture was reported to have become more favorable for risk assets. This included crypto assets like Bitcoin and Ethereum, which led the pack of crypto markets. Notable was the increase in the probability of a US Federal Reserve rate cut in December. This had led to a recovery in global equities, and eventually it translated into increasing capital flow for cryptocurrencies.

Volatility indicators such as Vomex’s BVIV(a 30-day implied volatility index) were reported to have fallen. This suggested that market-wide panic was easing. In addition to this, the gap between PUTs and CALLs in the options market also narrowed. This indicated a weaker demand for downside protection and a decrease in bearish expectations.

November was reported as being marked by significant institutional outflows, which were mostly from Bitcoin ETFs. The latter half of the month saw a reversal of this trend. Spot Bitcoin ETFs saw renewed inflows. This indicated that institutional interest remained alive even during periods of volatility.

What To Predict Next

The market’s escape from extreme fear was described as a critical psychological milestone. However, it was noted as important to recognize that it still resided in fear territory and not greed. This essentially meant that while the panic had subsided, caution remained the dominant sentiment.

Analysts have warned that the recovery remained fragile and could be easily reversed by negative macroeconomic news or if selling pressure were to resume with full force. Some analysts, however, believed that the current momentum would be sustained if macro conditions remained favorable. In such a case, according to their observation, Bitcoin could challenge its all-time high and move towards the $175K-$250K range post 2025.

Conclusion

It was reported that the cryptocurrency market had shown its resilience by recovering from a period of intense selling pressure and extreme fear. The improved sentiment was said to be driven by a combination of a Bitcoin price rebound, favorable macroeconomic developments, and easing volatility. However, sources cautioned that the path forward was not without risks.

The market remains sensitive to external influences and technical hurdles. The shift in sentiment from “extreme fear” to “fear” underscores the importance of a cautious and balanced approach in a market that remains inherently volatile.