Emre Yumlu 
Despite the current climate of fear and caution across the cryptocurrency markets, analytics firm Santiment suggests that this very sentiment could pave the way for an unexpected rally. As weaker investors panic and sell, long-term holders may seize the opportunity to accumulate.
Fear in the Market Could Set the Stage for a Rally
According to Santiment’s latest data, overall investor sentiment has dropped sharply. Historically, such conditions often signal the final stages of a market downturn, as “weak hands” exit and “diamond-handed” investors step in to buy at discounted prices.
The firm noted that social media discussions around Bitcoin are now evenly split between bullish and bearish tones, while Ethereum has around 50% more positive mentions than negative ones — a relatively low margin compared to previous periods. Meanwhile, XRP is experiencing one of its most fearful sentiment phases of 2025, with less than half of the comments reflecting optimism.
Extreme Fear Index and Weak Hands Selling
The Crypto Fear & Greed Index recently plunged to 15 out of 100, marking an “extreme fear” zone — its lowest reading since March. Joe Consorti, Head of Bitcoin Growth at Horizon Protocol, compared the current atmosphere to late 2022, when Bitcoin traded near $18,000.
However, Santiment interprets this fear-driven market as a potentially bullish setup. The firm argues that widespread pessimism usually indicates that the market is approaching capitulation. “When the crowd turns negative on major crypto assets, large stakeholders step in to scoop up undervalued coins — often igniting the next leg upward,” Santiment explained.
Long-Term Holders Take the Stage
Samson Mow, founder of Bitcoin infrastructure company Jan3, echoed similar thoughts. According to Mow, most of the current selling pressure comes from investors who entered the market over the past 12 to 18 months and are taking profits out of fear that the cycle has peaked.
“These are not long-term believers in Bitcoin,” Mow said, describing them as short-term speculators reacting to headlines. He added that as this cohort of sellers diminishes, conviction-driven holders are taking control of the market — a healthy sign for the long term.
“This is always the ideal outcome,” Mow stated. “The speculators are gone, and strong hands are holding. 2026 is shaping up to be an incredible year. Plan accordingly.”
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