Crypto Fear & Greed Index Plummets to 9 — Lowest Since FTX Collapse Clickable image
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Crypto Fear & Greed Index Plummets to 9 — Lowest Since FTX Collapse



Headline: Crypto Fear and Greed Index Plummets to 9 — Lowest Since FTX Collapse

Crypto sentiment collapsed to levels not seen since the FTX fallout, as bitcoin’s sharp, volatile moves this week forced broad deleveraging and dragged prices lower. The Crypto Fear and Greed Index plunged to 9 on Friday — classified as “extreme fear” — down from 12 a day earlier, 16 last week and 42 a month ago, underscoring how quickly traders shifted from caution to panic.

The index, which is weighted heavily toward bitcoin, aggregates multiple indicators — volatility and drawdowns, market momentum and trading volume, social media engagement, bitcoin dominance and Google search trends tied to bitcoin — to quantify investor mood rather than predict price direction. A sudden spike in volatility, increased defensive positioning and a surge in fear-driven searches were the main drivers pushing the gauge into single digits.

This rout accompanied a dramatic intraday swing in bitcoin: it briefly dipped toward $60,000 in late U.S. trading on Thursday before rebounding toward $65,000. That whipsaw reflected both forced liquidations of leveraged positions and opportunistic dip-buying, illustrating the high-stakes tug-of-war between sellers and buyers at key psychological levels.

While the bounce shows some investors are ready to buy dips, the 9 reading signals that the broader market mindset remains tilted toward “sell first, ask questions later.” Historically, episodes of extreme fear have often coincided with local market bottoms — panic tends to flush out overleveraged traders and short-term holders — but the index is a snapshot of stress, not a timing tool.

In short: the Fear and Greed Index isn’t forecasting where bitcoin will go next, but it does indicate the market has reverted to a level of anxiety typically seen only around systemic shocks. Traders and investors should treat the reading as a barometer of sentiment and risk, not a trade signal.

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