Following the massive crash that Bitcoin and the entire crypto market suffered over the weekend, the Fear & Greed Index has been pushed down to its lowest level in the last six months. This index, which measures the market sentiment and shows on a scale how investors are feeling about the crypto market, has now fallen back into the Extreme Fear territory. The number on the scale now shows the lowest level it has been since the market crash back in April 2025. Bitcoin Fear & Greed Index Sees Major Crash The Bitcoin Fear & Greed Index uses a number of factors to determine how investors are feeling about the market. It takes into account things like volatility, social sentiment aggregated across different social media platforms, market volume and momentum, and market dominance to come to a figure. Related Reading: Crypto Crash: $19.5 Billion Wiped Out In Record-Breaking Liquidation Event The data is aggregated, which puts it on a scale of 1-100, with 1-25 being Extreme Fear, 26-46 being Fear, 47-54 being Neutral, 55-75 representing Greed, and 76-100 representing Extreme Greed. Each of these shows either bullishness, bearishness, or nonchalance in the market. The most recent data shows that the Bitcoin Fear & Greed Index crashed to 24 on Sunday. This puts the index firmly in Extreme Fear territory, suggesting that investors are extremely cautious at this point. It also shows a reluctance to enter into any positions at this time. This is the result of the massive liquidation event that happened last Friday, with crypto traders losing over $19 billion in one day. Thus, it is no surprise that fear has gripped the market. However, this would also present a unique opportunity in the market. Buy When The Market Is Bleeding One of the oldest sayings in the financial world is to “buy when there is blood on the streets.” This represents times of extreme losses, where most investors are scared to put their money in the market. Thus, with the market teetering on Extreme Fear, it could be the time to buy. Related Reading: XRP’s 2017 Pattern Returns In 2025, Analyst Predicts Massive Rally The last time that the market declined into Extreme Fear this low was back in April 2025, and what followed was a rally that saw the Bitcoin price reach new all-time highs in May 2025. If this trend holds, then the market could be looking at a possible rapid increase. By Sunday, the market was already recovering, with the Bitcoin price crossing $114,000 and Ethereum making its way back above $4,000. It is still quite early to tell if the market is in a full recovery trend, but with prices already bouncing, it could signal the next wave of gains. Featured image from Dall.E, chart from TradingView.com
The Bitcoin price has once again pushed above the $100,000 level after three consecutive days of price increases. Particularly, Bitcoin’s return above $100,000 comes on the back of a 12.5% increase after it bounced off the $90,000 support level on Monday, January 13. As expected, this positive momentum with Bitcoin has flowed into other cryptocurrencies. Major altcoins have mirrored Bitcoin’s surge, contributing to a notable increase in the overall cryptocurrency market capitalization A byproduct of this crypto market cap increase has been a simultaneous movement in the Crypto Fear and Greed Index, which is now moving to the Extreme Greed threshold. Fear And Greed Index Moves To Extreme Greed The Crypto Fear And Greed Index is a popular index that measures market sentiment on a scale of 0 to 100. The scale is classified from the lower end of extreme fear up to the higher end of extreme greed and a neutral zone in the middle. Periods of extreme fear are characterized by oversold conditions and bearish market sentiment, often presenting buying opportunities. Related Reading: Can The Dogecoin Price Rally For 3 Months Straight? 2021 Bull Market Performance Says Yes On the other hand, when greed dominates, it often signals overbought conditions. It also opens up a possibility that a correction or crash might be close, especially if there is a quick switch from neutral to extreme greed. The entire crypto market cap has witnessed steady inflows this week. Data from CoinMarketCap shows that the total cryptocurrency market cap began the week around $3.14 trillion. This figure has risen to $3.57 trillion at the time of writing, representing an inflow of about $430 billion in the past five days. This 13.5% jump points to increased optimism as Bitcoin and a few major altcoins are now looking to return to new highs. These recent inflows into the crypto market have seen the index moving from a neutral threshold at the beginning of the week to a greed threshold at the time of writing. What’s particularly striking is the speed at which sentiment has shifted. As of now, the index is nearing the extreme greed threshold, a zone that suggests the market could be entering overbought territory. Where Does The Bitcoin Price Go From Here? The market’s ability to maintain its course and maintain a sentiment of greed hinges on Bitcoin’s ability to maintain a price above $100,000, given its dominant position in the market. Should the bulls succeed in defending the $100,000 mark and establishing it as a solid support level, this could mitigate the risk of extreme greed leading to overbought conditions and a subsequent downward correction. Related Reading: BONK Price Ready To Surge 1,105% From Here? Analyst Reveals Key Levels To Watch A support above $100,000 would essentially reset the Crypto Fear And Greed Index around this level. Failure to hold above $100,000 could validate the historical trend that an extreme greed sentiment usually leads to a crash. At the time of writing, Bitcoin is trading at $101,420 and is up by 1.6% in the past 24 hours. Featured image created with Dall.E, chart from Tradingview.com
The Bitcoin and general crypto market crash has sent investors spiraling and sentiment has completed been eroded as a result of this. The Crypto Fear & Greed Index, which measures investor sentiment, has plummeted during this time. But with the fluctuation in the Bitcoin price, investors remain indecisive on their view of the market. Crypto […]