Bitcoin Sentiment Hits 2022 Lows as Fear & Greed Index Falls to 10

The Bitcoin Concern & Greed Index has plummeted to 10, its lowest degree since June 2022, signaling excessive concern amongst traders.

Regardless of the panic, consultants recommend this might be a chief second to purchase.

Sentiment Crashes as BTC Worth Falls

The index, which measures market sentiment, fell from 49 final week, thought of impartial, to 10 today, signifying excessive concern. Based on Different.me, which publishes the metric, excessive concern is usually a sign that traders are overly involved concerning the goings-on out there, which may current a shopping for alternative.

Nonetheless, analysts stay divided; whereas some have referenced historic knowledge displaying excessive concern typically precedes rebounds, others, like BitMEX co-founder Arthur Hayes, have cautioned that Bitcoin, the most important cryptocurrency by market capitalization, may drop to as little as $70,000 earlier than stabilizing.

The continued turmoil has seen the worth of BTC tumble from practically $99,000 final week to under $84,000, a three-month low. Whereas it’s buying and selling at just below $86,000 on the time of this writing, the asset’s current poor type dragged the broader crypto market into the pink, erasing months of beneficial properties, with altcoins like Ethereum, Solana, and BNB equally bleeding and pushing merchants into panic mode.

The downturn noticed the sector’s total worth dip beneath $3 trillion, shedding not less than $200 billion in simply sooner or later. Liquidations have additionally surged, with greater than $1 billion in leveraged positions worn out over the identical interval.

Presently, crypto’s market cap is at $2.95 trillion, down 4.3% within the final 24 hours. Moreover, BTC’s dominance has risen to 57.6%, suggesting a shift away from riskier altcoins.

What’s Driving the Concern?

Specialists have pointed to elements like escalating tensions between the US and a few of its key commerce companions, together with Canada, Mexico, and China, as a key contributor to the downturn. The deadlock was a results of U.S. President Donald Trump saying new tariffs on items sourced from the three international locations.

As well as, the President has threatened to impose a 25% tax on imports from the European Union (EU), claiming the bloc was created to “screw” the US.

Moreover, the nation’s spot Bitcoin ETF sector has seen huge outflows, with a file $938 million withdrawn in a single day. This obvious lack of institutional confidence has additional fueled the sell-off.