After the huge crash Bitcoin and the entire crypto market suffered Over the past weekend, the Fear & Greed Index fell to its lowest level in the past six months. This index, which measures market sentiment and shows at scale how investors feel about the crypto market, has now fallen back into Extreme Fear territory. The number on the scale now shows the lowest level since the market crash in April 2025.
Bitcoin Fear & Greed Index Sees Major Crash
The Bitcoin Fear & Greed Index uses a number of factors to determine how investors feel about the market. To arrive at a figure, things like volatility, social sentiment on various social media platforms, market volume and momentum, and market dominance are taken into account.
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The data is aggregated, putting it on a scale of 1-100, where 1-25 is extreme fear, 26-46 is fear, 47-54 is neutral, 55-75 is greed, and 76-100 is extreme greed. Each of these shows bullishness, bearishness or nonchalance in the market.
The latest data shows that the Bitcoin Fear & Greed Index crashed to 24 on Sunday. This puts the index firmly in Extreme Fear territory, indicating that investors are being extremely cautious at the moment. It also shows a reluctance to take a position at this time.
This is the result of the massive liquidation event that happened last Friday, with crypto traders losing more than $19 billion in one day. So it’s no surprise that fear has gripped the market. However, this would also offer a unique opportunity in the market.
Buy when the market is bleeding
One of the oldest sayings in the financial world is: ‘buy when there is blood on the street’. This represents times of extreme losses, when most investors are afraid to put their money in the market. So with the market teetering on Extreme Fear, now could be the time to buy.
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The last time the market fell to this low in Extreme Fear was in April 2025, and what followed was a rally that saw the Bitcoin price reach new all-time highs in May 2025. If this trend continues, the market could be looking at a possible rapid rise.
The market already recovered on Sunday, with the Bitcoin price crossing $114,000 and Ethereum rising back above $4,000. It’s still quite early to tell if the market is in a full recovery trend, but with prices already bouncing, this could be a sign of the next wave of gains.
Featured image of Dall.E, chart from TradingView.com