The Bitcoin Fear & Greed Index has dropped to 15, signaling “Extreme Fear” across the crypto market. This marks one of the lowest readings since February 2025 as investors adopt the risk-off sentiment. The index, which tracks sentiment using volatility, trading volume, social media trends, and Bitcoin dominance, suggests that retail investors are getting wary amidst the uncertainty.
Why is fear rising?
Several factors are driving the downturn. For one, spot Bitcoin ETFs logged their second-worst day ever, with $866 million in net redemptions. This has pushed BTC to a six-month low and raised concerns over market structure and investor demand. Bitcoin has struggled to hold above $95,000, with sharp sell-offs following October’s liquidation event. At the time of reporting, Bitcoin was trading at $95,209.48, down over 7% in the last 24 hours.
Drawing historical parallels
The last time the index fell below 20 was in February 2025, followed by a 25% decline in Bitcoin’s price. Similar drops in past cycles have often preceded strong recoveries, reinforcing the common saying, “Buy the Fear, Sell the Greed.”
In fact, some analysts remain cautiously optimistic. Market watchers argue that extreme fear often signals a local bottom. Santiment data shows negative sentiment across Bitcoin, Ethereum, and XRP, which historically precedes rebounds. Some even suggest that the current sentiment could set the stage for a surprise rally, as those with sweating palms exit and stronger players consolidate positions. Others warn that Bitcoin could dip further toward the $90,000 range before stabilizing.