Sentiment Index Climbs to a Three-Week High

A widely followed crypto sentiment indicator recorded a score of 28 in its latest update, moving decisively out of the “extreme fear” zone and back into standard “fear” territory. This marks the highest reading seen since mid-December, signaling a modest but notable improvement in market mood.

Importantly, this shift occurred despite Bitcoin trading near $88,995. Although price action has yet to confirm a clear recovery, sentiment improvements often precede changes in market direction. For many traders, this development is viewed as an early signal that downside momentum could be losing strength.

Risk-Reward Dynamics Attract Attention

Some market participants argue that prolonged fear can create attractive entry conditions. Crypto entrepreneur Brian Rose highlighted that the sentiment index has remained in fearful territory for roughly eight consecutive weeks—longer than several previous downturns. According to Rose, this environment presents one of the most favorable risk-reward setups seen in recent cycles.

Historically, periods dominated by fear have often coincided with accumulation phases, while excessive optimism has tended to precede market corrections. As a result, sentiment metrics continue to play a critical role in short- and medium-term trading strategies.

Mixed Investor Psychology Heading Into 2026

On-chain analytics firm Santiment notes that crypto investors are approaching 2026 with mixed emotions rather than outright optimism. While some participants are still processing recent losses, others are celebrating gains, renewed engagement, and the resilience of the broader crypto community.

Santiment also points out that community-driven events and incentive programs have helped sustain participation levels, reinforcing optimism despite lingering macro and market-related challenges.

Other Indicators Signal Continued Caution

Additional data supports the view that investors remain risk-averse. The CoinMarketCap Altcoin Season Index currently stands at 23 out of 100, firmly indicating “Bitcoin Season.” This suggests capital concentration in Bitcoin rather than widespread interest in altcoins.

Performance across the altcoin market remains uneven. While a few projects have delivered notable weekly gains, others have experienced sharp declines, reinforcing the selective and cautious nature of current market behavior.

A Market in Transition

Overall, the crypto market appears to be in a transitional phase. Fear is no longer at extreme levels, but confidence has yet to fully return. With sentiment improving slowly and volatility likely to persist, market participants continue to navigate an environment shaped by caution, selective optimism, and uncertainty about the next major move.

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The post Crypto Fear Eases, but Market Uncertainty Remains appeared first on Coin Engineer.

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According to an official announcement, research will be launched starting next week on the electricity consumption of cryptocurrency mining companies in the U.S.

The Energy Information Administration (EIA) announced that certain companies have been selected for the energy consumption survey. They also stated that they will seek public comment to collect energy usage data from BTC and cryptocurrency miners. This step is expected to increase transparency in energy consumption in the sector.

It was stated that the research on the energy use of BTC miners was requested by the Office of Management and Budget, which is affiliated with the Presidential Office under US President Joe Biden, under the title “Urgent collection of data”.

Joe DeCarolis made the following statements (Bitcoin Miners):

“We plan to continue to analyze and write about the energy implications of cryptocurrency mining activities in the United States.

We will focus specifically on how energy demand for cryptocurrency mining is evolving, identify geographic areas with high growth, and measure the electricity sources used to meet cryptocurrency mining demand.”

According to the Cambridge University Bitcoin Electricity Consumption Index, the estimated global electricity consumption of Bitcoin miners in 2023 is 121.13 terawatt-hours, while a recent report by the IEA estimates that BTC mining will use 160 terawatt-hours of electricity by 2026.

This research is significant because it will provide more accurate data on the energy consumption of Bitcoin mining in the U.S. This data can be used to inform policy decisions about the future of Bitcoin mining in the country.

The research is also expected to shed light on the environmental impact of Bitcoin mining. This is a growing concern, as Bitcoin mining consumes a significant amount of energy.

The results of the research will be published in a report by the EIA in early 2024.

The report is expected to be of interest to policymakers, energy companies, and Bitcoin miners.

The post Research to be Launched for Bitcoin Miners? appeared first on Coin Engineer.