Matrixport: Market Sentiment Gradually Stabilizes, Downside Risks Ease

Odaily News Matrixport released its chart for today, stating that the start of the new year has been relatively calm, but market sentiment is gradually warming up. Notably, the moving average of our proprietary "Greed and Fear Index" is showing clearer signs of bottoming out. Historically, such signals have often appeared near Bitcoin's periodic bottoms. Against this backdrop, the market is more inclined to enter an upward correction phase, with the risk of continued decline receding. It should also be noted that this does not mean prices will quickly return to all-time highs. With sentiment stabilizing, downside risks are more likely to be contained within a manageable range.

Looking back to late October, we highlighted in our weekly "Matrix on Target" report at the time that the possibility of a larger-scale correction was relatively high. Entering 2026, the strategic environment for one-sided long positions may still not be favorable; the ability to maintain discipline and capture market swings in a more tactical manner may become the key to widening the performance gap.