Extreme Fear Dominates Bitcoin Fear and Greed Index – Analysts Assess the Latest

Investor sentiment in the cryptocurrency market took a significant hit, with the Crypto Fear & Greed Index dropping to 10 points, deep in the “extreme fear” zone. The decline came as Bitcoin extended its three-day decline to drop below $86,000.

This marks the lowest value for the Index since June 2022, a period that saw the collapse of Three Arrows Capital, the extinction of Terra’s LUNA and UST tokens, and Celsius halting user withdrawals.

Ranging from 0 (extreme fear) to 100 (extreme greed), the Fear & Greed Index measures market sentiment based on factors such as volatility, momentum, trading volume, social media trends, Bitcoin dominance, and general investor mood. A lower index score is generally viewed as a potential buying opportunity, while higher scores indicate the possibility of a market correction.

You can access Bitcoinsistemi.com's special Fear and Greed Index here and also review historical data.

The recent decline coincided with global economic concerns, including U.S. President Donald Trump’s announcement of potential 25% tariffs on European goods. The news has reignited investor concerns and sent sentiment into extreme fear, according to BRN analyst Valentin Fournier.

WeFi Head of Growth Agne Linge echoed these concerns, noting that uncertainty surrounding U.S. regulatory policies has left investors hesitant. “While we have seen shifts in crypto app policies, ongoing regional tariff wars and weak consumer sentiment have dampened investor confidence,” Linge said.

Additional tariffs for Canada and Mexico, which will come into effect on March 5, have further weighed on markets. “The stock market’s response to a potential economic collapse is prompting investors to shift capital away from riskier assets,” Linge said. “Given its inherent volatility, Bitcoin does not offer the short-term stability needed in this uncertain environment.”

Despite widespread fear, some analysts remain optimistic. Fournier noted that Bitcoin has historically experienced 25% pullbacks even in bull cycles. “While some fear the onset of a bear market, history shows that such corrections are common,” he explained.

He also cited the potential for a recovery, citing the US’s efforts to establish a National Crypto Reserve as a long-term bullish catalyst: “We maintain our bullish stance and expect a market recovery before the weekend. We remain overweight Solana and remain neutral on BTC and ETH.”

*This is not investment advice.