Bitcoin Fear & Greed Index Drops to 21, Lowest Since April
Bitcoin Fear & Greed Index has plunged into the extreme fear zone, dropping from a neutral 42 to 21 in a single day—the lowest reading since April.
The Bitcoin Fear & Greed Index measures trader sentiment by tracking volatility, trading volume, market dominance, social media chatter and Google searches.
Bitcoin’s price slid more than 11% last week, falling from around $105,600 to near $100,400.
Historically, readings below 25 have signaled market bottoms and buying opportunities.
Contrarian traders may see the current extreme fear reading as a signal to accumulate.
However, it remains unclear whether Bitcoin will stabilize or continue its downturn.
Bullish
The sharp drop in the Bitcoin Fear & Greed Index to 21 signals extreme market fear that historically coincides with Bitcoin price bottoms. In the short term, heightened fear may prolong selling pressure as traders stay cautious. However, contrarian investors often interpret extreme fear readings as buying opportunities. Over the long term, if historical patterns hold, this sentiment trough could mark a reversal point, attracting accumulation and stabilizing prices. The uncertain timing of a rebound warrants careful risk management, but the prevailing sentiment suggests a potential bullish turn once selling fatigue sets in.