Social and trader sentiment towards leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) has deteriorated to historically bearish extremes, according to data from analytics firm Santiment. This shift follows a major market downswing, with Santiment's Positive/Negative sentiment indicator showing Bitcoin's ratio at a low of 0.80 and Ethereum's at 1.08. In stark contrast, XRP sentiment has diverged, maintaining a more optimistic outlook with a score of 2.19—103% higher than Ethereum's and 173% higher than Bitcoin's.
This sentiment split creates an unusual market setup, where fear is concentrated in specific large-cap assets rather than being uniform across the board. Over the past week, Bitcoin and Ethereum prices fell by approximately 4.97% and 4.92%, respectively, while XRP experienced a larger decline of 6.82%. Despite its steeper price drop, XRP's social sentiment has remained robust. Analysts suggest this reflects the distinct psychology of XRP holders, who Swyftx lead analyst Pav Hundal describes as having "unwavering faith" in the asset's fundamentals, making them "less skeptical in the drawdown."
Santiment's commentary emphasizes a key behavioral pattern: markets tend to move against the prevailing fear of retail participants. The extreme bearish sentiment for BTC and ETH thus increases the probability of a short-term relief rally, as long as disbelief remains elevated. However, this sentiment data is not a confirmation signal; if prices continue to fall alongside bearish sentiment, it would signal that fear is being validated, increasing downside risk.
The broader market context remains cautious. The Crypto Fear & Greed Index has hit an "Extreme Fear" score of 12, its lowest since mid-December. Furthermore, the Altcoin Season Index is deep in "Bitcoin Season" territory at 32 out of 100, indicating a continued preference for Bitcoin over riskier altcoins. Bitwise CIO Matt Hougan noted that the crypto market has been in a "full-blown crypto winter" since January 2025, suggesting the current downturn may be closer to its end than its beginning.
