Crypto Market Sentiment Shifts Out of Extreme Fear as Bitcoin Stabilizes Below $90K

Source: Coinomedia Original Title: Crypto Market News Today: Crypto Sentiment Shifts Off Extreme Fear As DeepSnitch AI Presale Surges Past $1M Amid Growing Adoption Original Link:

Market Sentiment Shows Early Signs of Recovery

The crypto market is flashing early signs of a sentiment rebound after a widely followed market indicator moved out of “extreme fear” territory for the first time in three weeks. The shift comes as Bitcoin stabilizes below $90,000, offering cautious optimism across the broader digital asset landscape despite lingering macro uncertainty.

Investor sentiment across the crypto market has shown early signs of improvement, with the sentiment index climbing out of “extreme fear” territory for the first time in weeks. While caution remains prevalent, the shift marks the most optimistic reading seen in more than 21 days. The index rose to a score of 29 in its latest update, placing sentiment back into the broader “fear” category. Although still far from neutral levels, the increase suggests selling pressure may be easing as traders reassess short-term risk.

Bitcoin is hovering around $88,995 as of January 2, continuing to trade below the $90,000 mark that many view as a key psychological barrier. Despite this, the gradual improvement in sentiment has been welcomed by market participants, particularly after an extended stretch dominated by fear-driven positioning.

Avalanche Shows Resilience with 9% Weekly Surge

This past week brought a noticeable 9% rise for Avalanche, with AVAX trading rising from around $12.54 on December 27 to about $13.61 by January 2, marking a solid weekly performance. Recent price movements have been supported by speculation around potential ETF interest and gradual network adoption, which have helped AVAX outperform several peers in a sluggish environment.

Dogecoin Sees 2% Rise as Market Sentiment Improves

Dogecoin posted a modest weekly gain, moving from about $0.1253 on December 27 to roughly $0.281 by January 2. While meme coin rallies rarely happen in isolation, this uptick comes as technical indicators show DOGE finding short-term support after weeks of sideways pressure.

The move higher coincides with improving risk appetite after market sentiment climbed out of the “extreme fear” zone, encouraging traders to buy high beta assets like Dogecoin. While the rally remains modest, the shift in sentiment has been enough to trigger light accumulation.

Market Outlook

While uncertainty and volatility continue to dominate headlines, the crypto market shows a clear divide between speculation-driven moves and projects delivering real utility. The current market environment remains highly volatile, with traders navigating mixed signals and uncertain macro conditions. As sentiment gradually improves and key psychological price levels are tested, market participants are increasingly focused on projects with tangible value propositions rather than pure speculation.