Crypto Fear and Greed Index Plummets to 28
After enjoying several months of greed in 2024, the cryptocurrency Fear and Greed Index continues to slide into fear territory, scoring 28 out of 100. This drop indicates that investors are hesitant to put funds into the market, as they anticipate further price declines.
From the perspective of how bad the current market sentiment is, the last time the cryptocurrency Fear and Greed Index dropped to 28 was in November 2022. This was after the notorious FTX crash, when Bitcoin's price plummeted to $16,000.
Since then, the index has remained above 30, deflecting each trend into extreme fear. However, the market seems to have fully succumbed to the bearish pressure, which may ultimately push it into extreme fear territory for the first time in two years.
Bitcoin Recovery May Be Imminent
While the cryptocurrency Fear and Greed Index has plummeted to 28 and firmly resides in fear territory, keeping investors at bay, historically, this could be a good sign. One thing is consistent: a drop in the index to "extreme fear" typically marks the bottom of a decline.
For example, back in November 2022, when Bitcoin's price plunged to $16,000 and pushed the Fear and Greed Index below 28, it signaled the market's bottom. There was some sideways movement for a period of time. However, in the following months, the market began to recover and embarked on another bullish run.
From the bottom in November 2022, the price rose by over 250%, hitting a new all-time high in 2024. If this trend continues, once accumulation is complete, Bitcoin's price may rebound again, potentially leading to another historic high.
At the time of writing, Bitcoin's price has rebounded from its low to $57,200. Despite still being down 8.8% over the past seven days, this is still a welcome recovery from the low below $54,000 over the weekend. BTC struggles with emotions|Source: BTCUSD on Tradingview.com
