A ‘extreme fear’ reading of several days in a widely followed feelings index could be indicative that Bitcoin prices that are at a bottom before moving higher in the coming weeks, with a previously similar configuration that precedes a 200% increase in BTC.
The fear and greed index, which measures the emotions of investors in markets such as Bitcoin, ranging from 0 (lower feeling) to 100 (higher feeling), has shown an extended reading of ‘extreme fear’ in recent days as prices were washed 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 $ 53k, we are seeing an extreme fear sustained in the market.
The last time this happened? $ BTC 2x’d in the next 3 months.
Will the story be repeated? 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), tending to act as an opposite indicator in the short term. It is based on the volatility and impulse of price, the feeling of social networks, the data of Google trends and the general market share of Bitcoin.
“Bitcoin’s is immersed in ‘extreme fear’ in the Fear & Greed index, the first since September 2024, when BTC negotiated at $ 53K, it echoes a fundamental historical minimum,” Vincent Liu, cio of the commercial firm Kronos Research, told Coindesk in a telegram message. “At that time, Bitcoin’s value doubled in the next three months, hinting at a possible purchase opportunity for smart investors.”
“In the midst of current market volatility, fueled by commercial tariffs and broader macroeconomic uncertainties, this moment could arise as a golden entry point, provided the ease of global commercial tensions and strengthens the general economic feeling,” Liu added.
Bitcoin and several important tokens, including Cardano Ada, Sol de Solana and XRP (XRP), increased on Sunday after the announcement of President Trump of a Cryptographic Strategic Reserve of the United States.
But the initial emotion was short -lived due to the taking of profits in the midst of the lack of concrete plans and a statement of risk in broader capital markets.
Trump’s tariff ads in Canada, Mexico and China further impacted markets, and merchants now expect more clarity from the next cryptographic summit of the White House to obtain signals on future positioning.
