Will Bitcoin be bullish or bearish in 2026? Market sentiment reveals investor anxiety

The cryptocurrency market is currently engulfed in a strong bearish sentiment. Since the beginning of the year, the investor psychology indicated by market sentiment indicators has been extremely unstable, and opinions within the industry are highly divided regarding the outlook for Bitcoin in 2026. The deterioration of this sentiment index provides important information for predicting future market trends.

Extreme Pessimism Indicated by Market Sentiment Index

According to PANews, in late December, the Fear and Greed Index for cryptocurrencies recorded a value of 23, revealing that the market has been in a state of “Extreme Fear” for over two weeks. This index has remained at a low level throughout December, indicating a continuous decline in investor confidence.

Latest data as of January 21 shows that Bitcoin sentiment also indicates a bearish outlook, with 50% of market participants holding a “Bearish” stance, reflecting persistent bearish sentiment. From the trend of this sentiment index, it is evident that many investors are feeling uncertain about the market’s future.

Experts Diverge on Bitcoin Predictions for 2026

Forecasts for Bitcoin’s performance in 2026 vary significantly among market experts. The analyst group PlanC, based on the historical fact that Bitcoin has never experienced two consecutive years of annual decline, predicts a bullish market next year. Similarly, Matt Horgan, Chief Investment Officer at investment firm Bitwise, also expresses an optimistic view regarding an upward trend in 2026.

Conversely, veteran crypto trader Peter Brant presents a different perspective. Brant, along with Julian Timmer, Global Head of Macro Economic Research at Fidelity, points out that 2026 could be a “dismal year” for Bitcoin, with a predicted price decline to a range between $60,000 and $65,000.

Comparing Bullish and Bearish Arguments

The bullish outlook is based on the cyclical nature of Bitcoin’s price movements over the past more than 10 years, supported by historical evidence that prolonged downtrends are rare. In contrast, the bearish camp emphasizes the short-term deterioration of the market sentiment index and analyzes the changing supply-demand balance in the current market environment.

There is a clear divergence between the pessimistic investor outlook indicated by the current market sentiment index and the conflicting predictions from experts. The future trend of Bitcoin in 2026 is likely to be highly influenced by upcoming market developments.