The Fear & Greed Index of the crypto market has dropped sharply to a level of 9 – the “extreme fear” zone, reflecting a negative sentiment that envelops almost the entire market.
When the index falls into the single-digit range, it often indicates that investors are being driven by fears of losses, macro bad news, or short-term liquidation pressures.
In this context, most behaviors in the market are no longer strategic but tend toward emotional reactions: selling to reduce risk, narrowing positions, standing aside to observe. Therefore, many strong sell-offs often occur when the index is in the extremely low range.
However, looking back at Bitcoin's history and previous cycles, such 'extreme fear' periods often occur near local bottoms or cycle bottoms, rather than at peaks. When the majority is pessimistic and the number of people wanting to sell is nearly exhausted, the market tends to stabilize gradually and create an accumulation base.
This does not guarantee an immediate recovery. Prices may still fluctuate wildly or retest the lows. However, in the long term, prolonged fear often creates a favorable environment for selective accumulation, rather than continuing to panic sell with the crowd.
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