A multi-day ‘intense fear’ reading in a widely observed sentiment index may indicate bitcoin prices that set a bottom before moving higher in the coming weeks-with a previously similar setup before a 200% increase in BTC.
The fear and greed index, which measures investors’ emotions in markets such as Bitcoin, from 0 (lowest emotions) to 100 (highest emotions), has shown an extended reading of ‘intense fear’ over the past few days as prices have fallen between $ 83,000 and $ 95,000 levels.
Bitcoin Fear & Greed Index: Extreme Fear!
For the first time since September 2024 – when the BTC was at $ 53k – we could see in the market fears.
Last time this 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 identify whether investors are too scared (potential purchase opportunity) or too greedy (possible market correction), which has the potential to act as a short -term contractor indicator. It is based on price and momentum volatility and momentum, social media sentiment, Google Trends data and overall part of the Bitcoin market.
“Bitcoin’s plunge on ‘extreme fear’ in The Fear & Greed Index, the first since September 2024, when the BTC traded at $ 53k, reflected an important history of history,” Vincent Liu, CIO, CIO’s trading firm Kronos Research, told CoinDesk in a telegram message. “Back then, the value of Bitcoin was doubled in the next three months, indicating a potential purchase opportunity for investors investors.”
“In the midst of volatility in today’s market, which is —fuel through trading tariffs and greater macroeconomic uncertainty, this moment may appear as a golden point of entry, given to global trade tensions that ease and general encouragement of economic sentiment,” Liu added.
Bitcoin and some major tokens, including Cardano’s Ada, Solana’s Sol and XRP (XRP), advanced Sunday following President Trump’s announcement of a US crypto strategic reserve.
But the initial chaos is short-lived due to earning income amid the lack of concrete plans and a risk-off status in the wider equity market.
Trump’s tariff announcements in Canada, Mexico, and China are more affecting markets, and entrepreneurs are now awaiting more clarity from the upcoming White House Crypto Summit for clues to future positioning.
