By USA Goldmines 
The Bitcoin Fear & Greed Index has plummeted to 10, its lowest level since June 2022, signaling extreme fear among investors.
Despite the panic, experts suggest this could be a prime moment to buy.
Sentiment Crashes as BTC Price Falls
The index, which measures market sentiment, fell from 49 last week, considered neutral, to 10 today, signifying extreme fear. According to Alternative.me, which publishes the metric, extreme fear is often an indication that investors are overly concerned about the goings-on in the market, which could present a buying opportunity.
However, analysts remain divided; while some have referenced historical data showing extreme fear often precedes rebounds, others, like BitMEX co-founder Arthur Hayes, have cautioned that Bitcoin, the largest cryptocurrency by market capitalization, could drop to as low as $70,000 before stabilizing.
The ongoing turmoil has seen the value of BTC tumble from nearly $99,000 last week to under $84,000, a three-month low. While it’s trading at just under $86,000 at the time of this writing, the asset’s recent poor form dragged the wider crypto market into the red, erasing months of gains, with altcoins like Ethereum, Solana, and BNB equally bleeding and pushing traders into panic mode.
The downturn saw the sector’s overall value dip below $3 trillion, shedding at least $200 billion in just one day. Liquidations have also surged, with more than $1 billion in leveraged positions wiped out over the same period.
Presently, crypto’s market cap is at $2.95 trillion, down 4.3% in the last 24 hours. Additionally, BTC’s dominance has risen to 57.6%, suggesting a shift away from riskier altcoins.
What’s Driving the Fear?
Experts have pointed to factors like escalating tensions between the United States and some of its key trade partners, including Canada, Mexico, and China, as a key contributor to the downturn. The impasse was a result of U.S. President Donald Trump announcing new tariffs on goods sourced from the three countries.
In addition, the President has threatened to impose a 25% tax on imports from the European Union (EU), claiming the bloc was created to “screw” the United States.
Furthermore, the country’s spot Bitcoin ETF sector has seen massive outflows, with a record $938 million withdrawn in a single day. This apparent lack of institutional confidence has further fueled the sell-off.
The post Bitcoin Sentiment Hits 2022 Lows as Fear & Greed Index Falls to 10 appeared first on CryptoPotato.
The Fear & Greed Index dropped from 49 to 10. Analysts remain divided on whether this presents a buying opportunity or more pain ahead. BTCEUR, BTCGBP, BTCUSD, BTCUSDT, Crypto News, featured1, Bitcoin, Bitcoin (BTC) Price, Fear & Greed Index
This articles is written by : Nermeen Nabil Khear Abdelmalak
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