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Crypto investors are running scared. Fear grips the market like never before, plunging to an eight-month low as economic storm clouds gather.
However, crypto analysts are anticipating the bearish mood to be short-lived.
Crypto bloodbath? The Fear & Greed Index just plunged to 10 – an “Extreme Fear” level not seen since late February. Bitcoin’s freefall below $95,000 triggered the panic, and as of now, a climb back above $96,000 remains elusive. Is this the bottom, or is there more pain to come?
Bitcoin’s February rollercoaster took a nosedive, plunging from a hopeful $102,000 peak to a disheartening $84,000 trough. The bottom dropped out just days after Bitcoin ETFs suffered a record-breaking exodus – a staggering $1.14 billion fleeing in a single day.
Indicators suggests market is less bearish than previous downturns
Want to know the crypto market’s mood? Savvy traders don’t guess; they consult sentiment indexes. These tools act like a collective emotional barometer, revealing whether fear or excitement dominates the market. Are investors bullish and buying? Or bearish and selling? Sentiment indexes help you decide if it’s time to join the party or head for the exit.
The Crypto Fear & Greed Index hasn’t reached a score this low since Feb. 27. Source: Alternative.me
But Andre Dragosh, Bitwise’s European research chief, sees a silver lining, arguing that past market storms were far more ferocious.
Dragosh flagged a potential market U-turn on X Friday, noting that Bitwise’s crypto sentiment index, while still bearish, isn’t as panicked as past downturns even with prices plumbing new depths. Is this a sign of resilient bulls refusing to throw in the towel?
“Our Cryptoasset Sentiment Index also continues to show a positive divergence,” Dragosh said.
Trump’s signature ended the shutdown blamed by some for crypto chaos, but a bigger beast looms: the Fed’s interest rate decision. Will they cut, and will crypto markets dance to their tune? The uncertainty hangs heavy.
Bitcoin chart signaling “potentially positive” move ahead
Bitcoin bulls, take heart! NorthmanTrader’s Sven Henrich, boasting over half a million X followers, spotted a potentially bullish signal on Bitcoin’s price chart Friday. He highlighted a “falling wedge” pattern coupled with a “positive divergence,” suggesting a possible upside move for the leading cryptocurrency.
“DRXL,” a Messari research veteran with eight years in the crypto trenches, says the current market feels like a broken record, a jarring contrast between hype-fueled headlines and the grim reality on the ground. He’s never seen such a disconnect.
Related: ‘We are buying’: Michael Saylor denies reports of Strategy dumping BTC
“Everything we once dreamed of is happening, yet it somehow feels… over,” he said.
Forget the year-end fireworks. Some experts are breathing a sigh of relief at crypto’s steady burn. Bitwise’s Matt Hougan, for one, sees a measured climb as preferable to a rocket launch followed by a crash landing. As he put it to Cointelegraph, a “rip into the end of 2025” could have set the stage for a painful pullback.
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