The Bitcoin and cryptocurrency market crash has completely eroded the positive sentiment as bears have now taken control of the entire market. Over the past month, Fear and Greed Index Bitcoin has been on a steady decline, hitting new yearly lows. With Bitcoin’s price falling to $53,000 last week, the cryptocurrency fear and greed index has reached levels not seen since the beginning of the year. FTX Crypto Exchange Collapses back in November 2022.
Cryptocurrency Fear and Greed Index Collapses to 28
The Cryptocurrency Fear and Greed Index keep on going to roll into fear territory with a score of 28 out of 100 after enjoying a few months of greed in 2024. This decline shows investors’ reluctance to put money into the market as expectations are that prices will continue to fall.
To put into perspective how bad the current market sentiment is, the last time the Cryptocurrency Fear and Greed Index was as low as 28 in November 2022. This followed the FTX’s Infamous Crashwhich saw the price of Bitcoin drop to as low as $16,000.
Since then, the index has managed to hold above a score of 30, fighting the tendency to fall into extreme fear at every turn. However, it appears that the market has completely succumbed to the bearish pressure, which could finally push it into extreme fear territory for the first time in two years.
Bitcoin Recovery Could Be Imminent
While the Cryptocurrency Fear and Greed Index While the index’s drop to 28, which is firmly in fear territory, has kept investors away, that could be a good thing given historical performance. One thing is for sure: the index’s drop into extreme fear territory typically marks the low point of a decline.
For example, in November 2022, when the price of Bitcoin fell towards $16,000 and pushed the Cryptocurrency Fear and Greed Index Below 28, the market bottomed out. There was a sideways move for a while. However, in the following months, the market started to recover and began a new bullish period.
Since the November 2022 low, the price has increased by more than 250% to reach a new all-time high in 2024. Now, if this trend were to continue, then the price of bitcoin could see another bounce once the accumulation is over, which could trigger a fresh run towards a new all-time high.
At the time of writing this article, the price of bitcoin The stock is already seeing some recovery from its lows to trade at $57,200. While that’s still down 8.8% over the past seven days, it’s still a welcome recovery from the weekend lows below $54,000.
Featured image created with Dall.E, chart by Tradingview.com
