Sentiment among cryptocurrency market participants has sharply deteriorated, reaching its lowest level in the past six months. The Fear and Greed Index, which reflects the emotional state of the market, has dropped from 64 to 35 points, indicating a dominance of “fear” among investors.
This is reported by Finway
Reasons for the Index Drop and Market Consequences
The primary factor behind the index’s decline was U.S. President Donald Trump’s announcement of a 100% tariff on imports of Chinese goods. In light of this news, the cryptocurrency market reacted with a massive correction: over $19.27 billion worth of trades were liquidated in just one day.
Such a drop in the index was last recorded in April 2025, when the price of Bitcoin was around $80,000. This time, Bitcoin lost approximately 20% of its value in one day, briefly dropping to $102,000, according to TradingView. The total volume of liquidations of long and short positions exceeded $19.27 billion.
Expert Assessments and Previous Market Fluctuations
According to Andre Dragosh, head of Bitwise’s European division, the current decline could serve as a “strong buy signal.” He emphasized that the company’s intraday sentiment index for crypto assets has fallen to -2.8 standard deviations — the lowest value since the summer of 2024, when the market experienced a decline in carry trades.
Andre Dragosh, head of Bitwise’s European division, noted that the current decline could be a “strong buy signal.” He stated that the company’s intraday sentiment index for crypto assets has dropped to -2.8 standard deviations. This is the lowest value since the summer of 2024, when the market was experiencing a decline in carry trades.
Similar levels of fear were observed in the market on April 16, when Bitcoin fell to $77,000 amid rising uncertainty in global trade. Just a few days prior, on April 9, Trump announced a 90-day suspension of mutual tariff increases and a reduction of the base rate to 10% for the vast majority of countries.
Earlier this week, the index was in the “greed” zone, as on October 5, Bitcoin set a new all-time high, exceeding $125,000.
Previously, experts at JPMorgan Chase had predicted that the price of Bitcoin could reach $165,000.