Crypto sentiment flips to ‘Fear’ as Bitcoin plunges after Trump’s tariffs

Crypto marketplace sentiment has dropped to its lowest level successful astir six months aft US President Donald Trump announced a 100% tariff connected China.

The Crypto Fear & Greed Index, which gauges wide marketplace sentiment, fell to a “Fear” level of 27 successful its Saturday’s update, representing a diminution of 37 points from Friday’s “Greed” speechmaking of 64. 

The diminution came arsenic Bitcoin (BTC) concisely dipped to $102,000 connected the Binance perpetual futures brace pursuing Trump’s announcement of sweeping tariffs connected Friday.

The Crypto Fear & Greed Index posted a “Greed” people of 71 erstwhile Bitcoin reached caller highs connected Monday. Source: Alternative.me

Over the past 24 hours, astir $19.27 cardinal worthy of agelong and abbreviated positions person been liquidated crossed the crypto market, according to CoinGlass. 

Crypto marketplace is flashing beardown “buying signal,” says analyst

In an X station connected Friday, Bitwise European caput of research, Andre Dragosch, said that the company’s intraday crypto plus Sentiment Index conscionable “generated a beardown contrarian buying signal.”

“The scale reached an intraday debased of -2.8 modular deviations - its lowest level since the ‘Yen Carry Trade Unwind’ successful the summertime of 2024,” Dragosch said.

Bitwise’s intraday cryptoasset sentiment scale is flashing a “strong contrarian buying signal.” Source: Andre Dragosch

The past clip the Crypto Fear & Greed Index was this debased was April 16, soon aft Bitcoin tumbled to $77,000 amid uncertainty escalating astir commercialized tensions.

Just days before, connected April 9, Trump announced a 90-day intermission connected higher reciprocal tariffs, reverting the tariffs to the 10% baseline for astir countries.

Earlier this week, the Index was successful “Greed” territory aft Bitcoin reached caller highs of $125,100 connected Monday. 

Bitcoin’s caller highs didn’t pb to euphoria

However, Santiment expert Brian Quinlivan pointed out connected Friday that Bitcoin’s caller all-time highs didn’t make the aforesaid level of enthusiasm connected societal media arsenic erstwhile all-time highs.

Related: Bitcoin Mayer Multiple: BTC terms tin deed $180K earlier being ‘overbought’

“It was similar a modest, run-of-the-mill absorption from the crypto audience,” Quinlivan said successful an interrogation with the Thinking Crypto podcast published to YouTube connected Thursday, referring to the level of bullish comments crossed societal media aft Bitcoin reached caller highs of $125,100 connected Monday.

“Really wasn’t overmuch of anything,” Quinlivan said. “It’s not astir arsenic euphoric arsenic immoderate of these erstwhile ones,” helium added.

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