The Crypto Fear and Greed Index has reached "extreme fear" today. This is the lowest level since the 2022 FTX collapse. Downward trends are spreading due to ETF outflows and Trump tariffs.
In less than a month, Bit has fallen from $100,000 to below $85,000, causing widespread fear. However, even with an impending crash, analysts predict the market will rebound strongly by mid-2025.
Fear & Greed Index, Red Alert
There is currently a lot of unease in the Crypto community. The Bit price has been an important indicator of the downward trend. ETF outflows on Monday led to record losses.
Now, the Crypto Fear and Greed Index has rapidly shifted from mild unease at the start of the month to extreme fear.
The Crypto Fear and Greed Index is an important indicator of market sentiment, tracking investor behavior patterns. It is currently in "extreme fear" status, the lowest level since the 2022 FTX collapse.
As Crypto liquidations increase, experts have begun publicly stating that a major correction is imminent. How did we get here?
Several key factors have contributed to this panic. One is the prevalence of scams in the meme coin market, which is scaring off potential investors and undermining confidence in Crypto.
Additionally, many major institutions have heavily invested in Crypto but are not seeing optimal returns. MicroStrategy recently invested $2 billion in Bit, but its stock price has only declined.
Furthermore, Donald Trump's proposal for a 25% EU tariff has added significant fear to the index. He had previously deferred tariffs on Canada and Mexico, allowing Crypto to catch its breath.
However, the US President confirmed today that tariffs will return even more strongly. Other companies heavily invested in Bit, such as Tesla, are also declining along with the US dollar.
Despite all these signs and omens, community leaders are urging calm. The Crypto Fear and Greed Index is plunging deeply. So what? These assets are highly volatile, and we have seen many major crashes before.
Financial expert Robert Kiyosaki still has faith in the fundamentals of Bit:
"Bit is crashing. Bit is on sale. I'm buying. The problem is not Bit, it's our monetary system and criminal bankers. When Bit crashes, I smile and buy more. Bit is honest money," he posted on social media.
In summary, while the index is reporting extreme fear in the Crypto community, statistically there are no better investment options.
"There have been two consecutive days of massive Bit outflows from Coinbase Advanced. This aggressive accumulation indicates that institutions or ETF buyers are strongly stacking. As Coinbase is a major exchange for US institutions, this appears to be long-term holding. If spot demand continues to increase, we could see a severe supply shortage," analyst Kyle Doops wrote.
Crypto is closely tied to macroeconomic factors, and these tariffs and turbulent political developments are impacting the current market sentiment.
However, Crypto-friendly developments like more ETF approvals and regulatory clarity could usher in a new upward cycle.
