Bitcoin Fear & Greed Index Hits Lowest Point Since COVID and LUNA Crash

Bitcoin Fear & Greed Index Hits Lowest Point Since COVID and LUNA Crash — What Comes Next?

Bitcoin's recent performance has been marked by uncertainty in global financial markets. The cryptocurrency faced resistance at the $74,000 level, and investor sentiment has been declining, reaching lows not experienced in almost four years. The Bitcoin Fear and Greed Index has dropped to just 10%, indicative of deep pessimism among investors, similar to conditions during past market crashes.

Key Takeaways

Bitcoin's price is currently around $71,262 with a minor increase of over 1% in the past day.
The Bitcoin Fear and Greed Index has fallen to 10%, signaling extreme fear among investors.
Historical patterns suggest that Bitcoin may rebound when sentiment is at its lowest, akin to previous market crashes.
A need for Bitcoin to reclaim higher price levels exists for market stabilization.

Bitcoin

Current Market Trends

The price of Bitcoin has exhibited notable fluctuation recently, influenced by ongoing global uncertainty in financial markets. Once again, the $74,000 resistance level has proven to be a formidable barrier as the cryptocurrency made attempts to breach it ahead of the weekend.

Recently, Bitcoin market sentiment has deteriorated, and bullish momentum appears to be fading after facing another rejection. On-chain data indicates that sentiment is at a troubling low not witnessed in nearly four years.

Fear & Greed Index Hits Record Low of 10%

According to a post on March 13 by crypto analyst Axel Adler Jr on the X platform, the Bitcoin Fear and Greed Index has been steadily declining in recent weeks. This index is crucial as it tracks investor sentiment in the crypto market and reflects behavioral trends.

The index typically ranges from 0 to 100, where higher numbers indicate extreme greed and potential market overheating, while lower numbers represent fear and skepticism among investors. As per the data from CryptoQuant shared by Adler Jr, the 30-day average Fear and Greed Index has plummeted to 10%. This level of negativity mirrors sentiments seen during both the COVID-19 market crash and the Terra (LUNA) ecosystem collapse. The accompanying chart illustrates a downward trend since the index peaked above the 75th percentile in late 2025.

Bitcoin
Source: @AxelAdlerJr on X

Adler Jr. posted on X:

“Sentiment is now deeply compressed. For market structure to stabilize, Bitcoin likely needs to reclaim higher price levels.”

This indication of compressed sentiment suggests that a price uptick could be vital for improving market conditions. Furthermore, the current Fear and Greed Index can offer insights into Bitcoin's immediate outlook. Historically, Bitcoin has often recovered when market sentiment is notably low.

For instance, during the COVID-19 crash, Bitcoin's price surged from approximately $5,000 to a new all-time high after the Fear and Greed Index dipped to around 10%. In contrast, in 2022, Bitcoin did not find its bottom until after the collapse of FTX, a few months post reaching the 10% threshold.

Overall, the current low level of the Fear and Greed Index may suggest that the market leader has either reached or is approaching a bottom.

Current Bitcoin Price Overview

Currently, Bitcoin's price is approximately $71,262, reflecting an increase of over 1% in the last 24 hours.

Bitcoin
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView