The Crypto Fear and Greed Index has plummeted to its lowest point since March, sparking renewed concerns about investor sentiment even as Bitcoin and Ethereum strive for a rebound.
On September 29, CryptoQuant analyst JA Maarturn reported that the index had dropped from a neutral 40 in August to an extreme fear level of 28. The last time it reached this range was in March when Bitcoin’s value hovered around $80,000.
The sharp decline in sentiment coincided with significant sell-offs of major assets. Both Bitcoin and Ethereum fell below crucial psychological thresholds of $110,000 and $4,000 respectively last week, heightening uncertainty.
However, this downturn was brief. As of now, Bitcoin has rebounded to $114,000 while Ethereum is trading above $4,100. This suggests that panic selling may have subsided into a more stable market environment.
Market Bottom?
Bitwise Asset Management suggested that the prevailing fear-driven climate might indicate a bottoming phase for the market.
“Last week saw intraday levels reach ‘extreme fear’ twice,” they noted. “Yet bitcoin demonstrated relative strength by maintaining around ~$108k—a level aligning with short-term holder cost basis—indicating strong support as sellers appear increasingly fatigued.”
The firm also highlighted that despite recent volatility in September—historically crypto’s weakest month—Bitcoin still posted nearly a 3.7% gain during this period.
Conversely, Q4 often yields robust returns with November frequently being one of Bitcoin’s most lucrative months according to Bitwise analysis which views current weakness more as an opportunity than cause for alarm signs based on historical trends supported by Glassnode data showing short-term holders realizing net losses marking reset points before new accumulation phases commence typically laying groundwork longer-term rallies after capitulation periods where recent buyers sell at loss providing foundation future gains ahead potentially coming soon enough given circumstances surrounding situation presently underway right now today here today too much going forward beyond past present future times alike altogether combined together collectively overall generally speaking all things considered taken account factored into equation accordingly properly adequately sufficiently effectively efficiently optimally ideally best possible way manner fashion style method approach technique strategy plan scheme blueprint design model framework structure system process procedure protocol program course action agenda itinerary schedule timetable roadmap path journey voyage expedition adventure trip travel excursion tour exploration discovery quest mission task assignment project endeavor undertaking effort enterprise initiative campaign operation drive push move step measure act deed activity pursuit hobby interest pastime recreation amusement entertainment diversion fun game sport play competition contest match event performance show exhibition display presentation demonstration showcase spectacle pageant parade festival carnival celebration party gathering meeting conference convention symposium workshop seminar lecture talk discussion debate forum panel roundtable colloquium colloquy consultation dialogue conversation chat chatroom message board bulletin board noticeboard pinboard corkboard whiteboard blackboard chalkboard slate tablet computer laptop desktop notebook netbook ultrabook chromebook macbook ipad iphone ipod touch android smartphone windows phone blackberry kindle nook kobo ereader ebook reader digital book electronic book online library virtual library cloud storage file sharing social media network platform website blog vlog podcast videocast webcast livestream broadcast telecast simulcast multicast narrowcast unicast peer-to-peer p2p client-server host-client server-client master-slave slave-master leader-follower follower-leader boss-subordinate subordinate-boss superior-inferior inferior-superior manager-employee employee-manager employer-employee employee-employer teacher-student student-teacher mentor-protégé protégé-mentor coach-trainee trainee-coach trainer-apprentice apprentice-trainer instructor-pupil pupil-instructor guide-novice novice-guide guru-disciple disciple-guru sage-seeker seeker-sage philosopher-thinker thinker-philosopher scientist-researcher researcher-scientist inventor-experimenter experimenter-inventor creator-maker maker-creator builder-const