Bitcoin’s price has plummeted, sending shockwaves through the crypto market and plunging investor sentiment into “extreme fear.”
A Rollercoaster Ride
The crypto market started the week strong, fueled by positive news. But that optimism quickly evaporated. Bitcoin, which briefly touched $95,000, crashed to $82,600—erasing all its recent gains and then some. In just 24 hours, Bitcoin lost around 11% of its value. Other cryptocurrencies fared even worse, with Ethereum and XRP down 13% and 14%, respectively.
Extreme Fear Takes Over
This volatility has understandably created a massive shift in investor sentiment. The “Fear & Greed Index,” a measure of market mood, reflects this perfectly. It’s currently sitting at a measly 15, firmly in the “extreme fear” zone (anything below 25). Just yesterday, it was at 33, showing how quickly things changed. The index hit a low of 10 in late February before the recent rally.
Historically, a Buying Opportunity?
While the current situation is undeniably scary, history suggests that “extreme fear” might actually be a good buying opportunity. Bitcoin’s price has historically bottomed out in this zone. However, it remains to be seen how much lower the sentiment will go before we hit the bottom this time.
