Bitcoin sentiment in 2026, industry perspectives are divided

CryptoMom · 2026-01-21T16:24:13+00:00

The cryptocurrency market sentiment has shifted from extreme fear in December 2025 to a more balanced outlook in January 2026. Diverging predictions for Bitcoin's future reflect uncertainty, with some expecting a rebound while others foresee potential declines. The evolving sentiment and industry forecasts remain critical to monitor.

CryptoMom

2026-01-21 16:24:13

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The sentiment in the cryptocurrency market is undergoing a major turning point. In late December 2025, the market experienced over two weeks of extreme fear, with the Fear & Greed Index recording a value of 23. However, by January 2026, the sentiment has begun to gradually shift.

From Extreme Panic in December to Current Sentiment Changes

Throughout most of December 2025, market sentiment remained at low levels, but the extreme fear at the end of the month clearly reflected a deterioration in investor psychology. Since then, as of the latest data on January 21, 2026, market sentiment has shown signs of relative balance, with bearish sentiment toward Bitcoin settling at 50%. This suggests that the market is gradually recovering from the extreme panic of December.

Conflicting Industry Outlooks for Bitcoin in 2026

Predictions for Bitcoin’s trajectory in 2026 are sharply divided among industry insiders. The bullish camp, including PlanC, bases their outlook on historical data indicating that Bitcoin has never experienced two consecutive years of annual decline, expecting a trend reversal next year. Matt Horgan, Chief Investment Officer at Bitwise, also shares an optimistic outlook for a rise in 2026.

On the other hand, bearish perspectives also exist. Veteran trader Peter Brant and Julian Timmer, Head of Global Macro Economic Analysis at Fidelity, point out that 2026 could be a “correction phase” for Bitcoin. Their forecasts suggest that Bitcoin’s price may face downward pressure within the range of $60,000 to $65,000.

Divergence Between Sentiment Shift and Market Forecasts

The current recovery in market sentiment and the divided industry forecasts reflect a disconnect between investor psychology and expert analysis. While sentiment shows signs of easing from the extreme panic of December, uncertainty about Bitcoin’s future price remains high. How Bitcoin’s sentiment and actual price movements will unfold in 2026 will be a key focus moving forward.

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