Bitcoin

Bitcoin, Crypto Struggles As Fear & Greed Index Falls To FTX Crash Levels

Published

6 months ago

July 8, 2024

The Bitcoin and crypto market crash has completely eroded positive sentiment as bears have now gained control of the entire market. Over the last month, the Fear & Greed Index has been on a steady decline, falling to new yearly lows in the process. With the Bitcoin price falling to the $53,000 level last week, it has now sent the Crypto Fear & Greed Index to levels not seen since the FTX crypto exchange collapse back in November 2022.

Crypto Fear & Greed Index Crashes To 28

The Crypto Fear & Greed Index continues to roll in the Fear territory with a score of 28 out of 100 after enjoying a few months of Greed in 2024. This decline shows the unwillingness among investors to put money into the market, as expectations are that prices will continue to fall.

To put into perspective how bad this current market sentiment is, the last time that the Crypto Fear & Greed Index was as low as 28 was back in November 2022. This was following the infamous FTX crash, which saw the Bitcoin price go as low as $16,000.

Since then, the Index has managed to stay above a score of 30, fighting off the tendency to fall into Extreme Fear at each turn. However, it seems that the market has succumbed to bearish pressure completely, something that could finally push it into the Extreme Fear territory for the first time in two years.

Bitcoin Recovery Could Be Imminent

While the Crypto Fear & Greed Index plummeting to a score of 28 and firmly sitting in the Fear territory has pushed investors away, it could be a good thing going by historical performance. One thing that has been consistent is that the index falling to Extreme Fear has usually marked the bottom of a decline.

For example, back in November 2022 when the Bitcoin price plummeted toward $16,000 and pushed the Crypto Fear & Greed Index below 28, it marked the bottom of the market. There was some sideways movement for a while. However, in the following months, the market began to recover and began another bull run.

From the bottom in November 2022, the price rose by more than 250% to reach a new all-time high in 2024. Now, if this trend were to hold, then the Bitcoin price could be looking at another rebound once accumulation is done that could trigger another run to a new all-time high.

At the time of writing, the Bitcoin price is already seeing some recovery off the lows to trade at $57,200. While this is still an 8.8% decline in the last seven days, it is still a welcome recovery from the weekend lows below $54,000.