Summary
- With Bitcoin (BTC) continuing its pullback, the Crypto Fear and Greed Index fell to 5, placing it in the “Extreme Fear” zone.
- Analysts noted that while the “Extreme Fear” zone has in some cases aligned with past bottom formation, it should not be interpreted as a standalone buy signal.
- They added that a move into a market recovery would require additional signs such as higher trading volumes and an improving macro backdrop, suggesting a cautious tone may persist in the near term.
As Bitcoin (BTC) remains in a pullback, sentiment in the digital-asset market has slipped back into the “Extreme Fear” zone.
According to Bitcoin Sistemi, a cryptocurrency-focused media outlet, Alternative.me’s Crypto Fear and Greed Index came in at 5 on the day. This marks the second-lowest level since the 12th and is down further from the prior day’s reading of 9.
The index is calculated on a scale from 0 to 100. A reading of 5 falls into the “Extreme Fear” bracket. Since early February, market sentiment has broadly stayed within the extreme fear range, underscoring a sharp deterioration in investors’ risk appetite.
The gauge aggregates multiple indicators—including volatility, trading volume, market momentum, social-media trends and Bitcoin dominance—to assess market sentiment. In recent weeks, widening price swings and macroeconomic uncertainty are seen as weighing on sentiment.
Still, analysts caution that while extreme fear has at times coincided with periods of bottom formation in the past, it should not be read as a standalone buy signal. For a sustained recovery to take hold, additional confirmation—such as rising trading volumes and an improving macro backdrop—will be needed.
Given current indicator trends, a cautious tone is likely to persist in the crypto market in the near term.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
