Bitcoin has plummeted by 30%, causing the cryptocurrency market to fall below $3 trillion. This sharp decline has led to 'extreme fear' readings on major sentiment indexes, with the CMC Crypto Fear and Greed Index and the alternative.me index registering scores of 10 and 11 out of 100, respectively. These are the lowest levels recorded since June 2023, reflecting heightened investor anxiety.
Historically, similar downturns have occurred in 2011, 2013, 2017, 2021, and now during the 2024–2025 cycle. Despite the current sentiment, these indexes suggest that the market may be undervalued, as past patterns show that prices often stabilize and return to average levels following such extreme conditions.
Bitcoin Plunge Triggers 'Extreme Fear' in Crypto Sentiment Indexes
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