Bitcoin Fear & Greed Index at 5-Month Low; BTC Dips Below $109K
Bitcoin (BTC) fell below $109,000 after a $3,000 drop halted its rally near $114,000. The Crypto Fear and Greed Index hit a five-month low of 28, reflecting rising market fear. Analysts link the decline to Fed Chair Jerome Powell’s cautious remarks on future rate cuts amid a weakening labor market and persistent inflation. Uncertainty over upcoming FOMC decisions has fueled BTC volatility. Despite the dip, many experts view this pullback as a buying opportunity. Historically, low readings on the Fear and Greed Index have preceded price recoveries and rallies. Traders watching market sentiment and volatility indicators may consider accumulating on dips, anticipating a return to neutral and greedy zones if macro risks ease and BTC resumes its uptrend.
Bullish
The sharp drop in BTC and the Fear and Greed Index falling to a five-month low signal temporary fear-driven volatility. Historically, such low sentiment readings have preceded strong Bitcoin rallies as buyers step in at discounted levels. Jerome Powell’s cautious tone on rate cuts triggered short-term uncertainty, but it did not alter the broader bull market narrative. In the short term, traders may see increased buying pressure on dips, pushing BTC back toward neutral and greedy sentiment zones. Over the long term, if macro risks ease and the Fed confirms a dovish stance, Bitcoin’s uptrend is likely to resume, making this pullback a favorable entry point.