The Bitcoin (BTC) market has entered an extreme fear zone as the “Fear and Greed” index dropped to a low not witnessed since February 2025. The Bitcoin Fear and Greed index, an indicator of market sentiments, ranges from zero, extreme fear to 100, extreme greed.
As highlighted by Bitwise European Head of Research, André Dragosch, this index is currently at 10. This signals that investors are in a panic mood over the performance of the flagship cryptocurrency.
Bitcoin Fear Index Hits Nine-Month Low
According to Dragosch’s observation, the market sentiment dropping to 10 matches the lowest reading which last occurred in February. This suggests that investors are very scared and many traders are unwilling to commit their funds to the asset.
This has created a high level of uncertainty in the market, triggering massive selloffs in the crypto space. The development has caused a dip in the price of Bitcoin. However, some market participants consider extreme fear readings as a buying opportunity.
Dragosch’s observation highlights that the market sentiment is at a historically low level and could be the signal for a possible reversal. Notably, the market might not linger at this level for long, and this awareness could trigger buying interest among investors.
Panic Selling Increases as Bitcoin Volume Dips
Within the last 24 hours, Bitcoin dropped from an intraday peak of $96,564.19 to a low of $94,850.54. As of this writing, Bitcoin is changing hands at $95,601.36, which represents a 0.08% decline within the time frame.
Meanwhile, market participants are still very cautious of the market volatility as trading volume has dropped massively. Bitcoin’s volume plunged by 47% to $49.79 billion this period.
There has been a spike in the amount of Bitcoin sold by large holders since the asset breached the psychological $100,000 support level. This has heightened concerns among retail investors as uncertainty continues to trail decisions.
Analyst Eyes Potential Reversal Despite Death Cross Warning
Bitcoin’s technical signal has further increased concerns as the coin recently formed a death cross. Many analysts consider this a bearish signal with any price gain likely to reverse.
Regardless of the current setting, an analyst, Benjamin Cowen opines that if Bitcoin is able to rebound within the week, it could rally towards the $100,000 level. That step is critical if the coin is to hit the anticipated $150,000 before the end of this current market cycle.