Crypto financial services platform Matrixport reported today that Bitcoin’s current Fear and Greed Index has fallen to 9%. This level suggests the index has re-entered the “extreme fear” zone below 10%.
Matrixport: Bitcoin Fear & Greed Index Drops to “Extreme Panic” Territory, Could Be a Bullish Signal
According to the company’s analysis, historically such low sentiment levels are often seen as a precursor to short-term rallies and price reversals. Matrixport noted that this could be a potential bullish indicator.
However, the index’s 21-day moving average has yet to show any clear signs of stability. Furthermore, the net outflow of approximately $1.2 billion from Bitcoin ETFs last week is adding to market uncertainty.
Bitcoin’s price is still trading below its 21-day moving average, and overall market sentiment remains weak. Matrixport analysts cautioned that investors would be safer to maintain a cautious stance unless a new macroeconomic or policy catalyst emerges.
Experts noted the recoveries that followed similar periods of fear in the past, and stated, “Periods of extreme panic can often bring about opportunities for accumulation.”
*This is not investment advice.