A reading of several days “Extreme Fear” in a largely followed feeling index could indicate that Bitcoin prices set a background before improving the coming weeks – with a previously similar configuration preceding a 200% increase in the BTC.
The Fear and Greed index, which measures investors ’emotions on markets like Bitcoin, ranging from 0 (lowest feeling) to 100 (highest feeling), has shown an extensive reading of the “ extreme fear’ in the last days while prices have whipped between the levels of $ 83,000 and $ 95,000.
Bitcoin Fear & Greed Index: Extreme Fear!
For the first time since September 2024 – when BTC was at $ 53,000 – we see a great extremely extreme fear on the market.
The last time it happened? $ BTC 2x’D in the next 3 months.
Will history repeat itself? pic.twitter.com/qtjrfn2j1n
– Kronos Research 🟠(@Kronosresearch) March 5, 2025
The index helps to identify if investors are too afraid (potential buying opportunity) or too greedy (possible market correction), tending to act as a short -term indicator. It is based on price volatility and momentum, the feeling of social media, Google Trends data and the overall Bitcoin market share.
“Bitcoin’s plunge in Extreme Fear ” on the Fear & Greed index, its first since September 2024, when the BTC has exchanged $ 53,000, echoes a historic pivot,” said Vincent Liu, CIO of commercial company Kronos Research, in Coindesk in a telegram message. “At the time, Bitcoin’s value doubled over the next three months, referring to a potential purchasing opportunity for experienced investors.”
“In the midst of today’s volatility of the market, fueled by broader commercial prices and macroeconomic uncertainties, this moment could emerge as a golden entry point, provided global trade tensions and global economic reinforcements,” added Liu.
Bitcoin and several major tokens, including Ada de Cardano, Sol and XRP (XRP) of Solana, jumped Sunday after the announcement by President Trump of a strategic reserve of American crypto.
But the initial excitement was short -lived due to taking advantage in the middle of the lack of concrete plans and a mood of risk in wider stock markets.
Trump’s pricing announcements on Canada, Mexico and China have had an impact on the markets, and merchants are now waiting for more clarity from the next Summit of White House cryptography for indices on future positioning.
