Extreme fear creeps back into the crypto market as Bitcoin falls by $20,000 in days

The last time investors were this scared was in early April, when BTC was trading around $76,200.

For the first time in over six months, crypto investors are experiencing deep fear. This bearish sentiment comes amid a broader market decline and Bitcoin (BTC)’s plunge to the $103,000 level.

Data from Alternative.me shows that the Crypto Fear and Greed Index has fallen to a level that indicates extreme fear among investors. The last time investors were this scared was in early April, when BTC was trading around $76,200.

Extreme fear grips investors

The Crypto Fear and Greed Index measures investor sentiment by analyzing various factors including market volatility, momentum, trends, BTC dominance and social media. The measure runs from 0 to 100, with the first number indicating extreme fear and the last number extreme greed. When the market has a neutral sentiment, the index fluctuates around 50.

Currently, the index stands at 22, a range that indicates extreme anxiety. Last week, the price hovered around 64, indicating greedy sentiment among investors as BTC mainly hovered above $120,000. It is worth noting that the index dropped from the greed level to the fear level when BTC plummeted during the market crash on October 10.

As BTC recovered from last week’s carnage, the index climbed slightly. However, the ongoing correction has led to a deeper dive into the metric. The current market situation has led to different reactions from different analysts. Some are predicting more pain in the coming days before the bulls take over and the positive seasonality of “Uptober” comes into play. Others claim that the bull run is over and things will go downhill from here until the end of the bear market.

In any case, periods when fear has dominated the market often provide buying opportunities for investors.

More pain coming?

As observers and participants wait for the market’s next move, Bitcoin liquidations are increasing by the hour. In the past 24 hours, more than 305,000 traders have been liquidated for more than $1.2 billion. Long positions account for at least $917 million, while shorts have wiped out more than $261 million.

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However, BTC rebounded in recent hours after US President Donald Trump said the tariffs on China he announced last week will not remain in place. Moreover, he and President Xi will meet in two weeks.