Bitcoin Fear & Greed Index Crashes To Lowest Level In 6 Months, Is A Market Rebound Coming?

2 hours ago

Following the monolithic clang that Bitcoin and the full crypto marketplace suffered over the weekend, the Fear & Greed Index has been pushed down to its lowest level successful the past six months. This index, which measures the marketplace sentiment and shows connected a standard however investors are feeling astir the crypto market, has present fallen backmost into the Extreme Fear territory. The fig connected the standard present shows the lowest level it has been since the marketplace clang backmost successful April 2025.

Bitcoin Fear & Greed Index Sees Major Crash

The Bitcoin Fear & Greed Index uses a fig of factors to find however investors are feeling astir the market. It takes into relationship things similar volatility, societal sentiment aggregated crossed antithetic societal media platforms, marketplace measurement and momentum, and marketplace dominance to travel to a figure.

The information is aggregated, which puts it connected a standard of 1-100, with 1-25 being Extreme Fear, 26-46 being Fear, 47-54 being Neutral, 55-75 representing Greed, and 76-100 representing Extreme Greed. Each of these shows either bullishness, bearishness, oregon nonchalance successful the market.

The astir caller information shows that the Bitcoin Fear & Greed Index crashed to 24 connected Sunday. This puts the scale firmly successful Extreme Fear territory, suggesting that investors are highly cautious astatine this point. It besides shows a reluctance to participate into immoderate positions astatine this time.

This is the effect of the massive liquidation lawsuit that happened past Friday, with crypto traders losing implicit $19 cardinal successful 1 day. Thus, it is nary astonishment that fearfulness has gripped the market. However, this would besides contiguous a unsocial accidental successful the market.

Buy When The Market Is Bleeding

One of the oldest sayings successful the fiscal satellite is to “buy erstwhile determination is humor connected the streets.” This represents times of utmost losses, wherever astir investors are frightened to enactment their wealth successful the market. Thus, with the marketplace teetering connected Extreme Fear, it could beryllium the clip to buy.

The past clip that the marketplace declined into Extreme Fear this debased was backmost successful April 2025, and what followed was a rally that saw the Bitcoin terms scope caller all-time highs successful May 2025. If this inclination holds, past the marketplace could beryllium looking astatine a imaginable accelerated increase.

By Sunday, the marketplace was already recovering, with the Bitcoin terms crossing $114,000 and Ethereum making its mode backmost supra $4,000. It is inactive rather aboriginal to archer if the marketplace is successful a afloat betterment trend, but with prices already bouncing, it could awesome the adjacent question of gains.