A multi-day ‘extreme fear’ reading in a widely-followed sentiment index could indicate that bitcoin prices are reaching a bottom before a potential upward movement in the coming weeks. This setup has previously preceded a 200% rise in BTC.
The Fear and Greed Index, which measures investor emotions in markets like bitcoin, has recently shown an extended ‘extreme fear’ reading as prices fluctuated between $83,000 and $95,000 levels. This index ranges from 0 (lowest sentiment) to 100 (highest sentiment) and helps identify whether investors are too scared or too greedy.
Vincent Liu, CIO at trading firm Kronos Research, commented on the current situation, stating that Bitcoin’s plunge into ‘Extreme Fear’ on the Fear & Greed Index echoes a pivotal historical low. In the past, when Bitcoin experienced a similar situation, its value doubled over the next three months, presenting a potential buying opportunity for savvy investors.
Liu believes that amid the current market volatility, this moment could be a golden entry point for investors, provided that global trade tensions ease and overall economic sentiment strengthens.
It’s worth noting that Bitcoin and several major tokens, including Cardano’s ADA, Solana’s SOL, and XRP, experienced a surge following President Trump’s announcement of a U.S. crypto strategic reserve. However, the initial excitement was short-lived due to profit-taking and a risk-off mood in broader equity markets. Traders are now awaiting more clarity from the upcoming White House Crypto Summit for further guidance on future positioning.
