After the huge accident that Bitcoin and the entire cryptocurrency market suffered Over the weekend, the Fear and Greed Index fell to its lowest level in the past six months. This indicator, which measures market sentiment and broadly shows how investors feel about the cryptocurrency market, has now fallen back into extreme fear territory. The number on the scale now shows its lowest level since the April 2025 market crash.
Bitcoin Fear and Greed Index Sees a Major Collapse
The Bitcoin Fear and Greed Index uses a number of factors to determine how investors feel about the market. It takes into account things like volatility, aggregated social sentiment across different social media platforms, market size and momentum, and market dominance to arrive at a number.
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The data is aggregated, placing it on a scale of 1 to 100, where 1-25 represents extreme fear, 26-46 represents fear, 47-54 represents neutrality, 55-75 represents greed, and 76-100 represents extreme greed. Each of these shows either bullishness, bearishness or apathy in the market.
The latest data shows that Bitcoin’s Fear and Greed Index fell to 24 on Sunday. This places the index firmly in the extreme fear zone, indicating that investors are very cautious at this point. It also shows an unwillingness to enter into any positions at this time.
This is the result Large scale liquidation event This happened last Friday, as cryptocurrency traders lost more than $19 billion in a single day. Therefore, it is not surprising that fear dominates the market. However, this would also provide a unique market opportunity.
Buy when the market is bleeding
One of the oldest sayings in the financial world is “buy when there is blood in the streets.” These represent times of huge losses, as most investors are afraid to put their money in the market. Therefore, with the market fluctuating due to extreme fear, this may be a good time to buy.
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The last time the market dipped into extreme fear was this drop in April 2025, and what followed was a rally that saw the price of Bitcoin reach all-time highs in May 2025. If this trend continues, the market could be looking at a potential rapid increase.
By Sunday, the market was already recovering, with Bitcoin surpassing $114,000 and Ethereum back above $4,000. It’s still too early to tell if the market is in for a full recovery, but with prices already rebounding, it could signal the next wave of gains.
Featured image from Dall.E, chart from TradingView.com
The post Bitcoin Fear & Greed Index Crashes To Lowest Level In 6 Months, Is A Market Rebound Coming? first appeared on Investorempires.com.
