That is the bottom stage in properly over a month for the index.
It is nearly tough to think about that simply a few weeks in the past, bitcoin was using excessive above $95,000, and the group was speculating a couple of potential run in the direction of a six-digit worth territory for the primary time in 2026.
Not solely did that rally fail to materialize, however the bears wakened in the midst of winter and initiated a number of consecutive leg-downs that in the end crashed BTC to a multi-month low. With that, the general sentiment plummeted as properly.
Concern and Greed Goes South
The favored Bitcoin Concern and Greed Index gathers information from numerous sources, akin to general volatility, market momentum, BTC dominance, and social media feedback, to find out the present investor and group sentiment towards the most important digital asset. Worth fluctuations and market momentum are accountable for 50% of the ultimate end result, which ranges from 0 (excessive worry) to 100 (excessive greed). This makes it quite logical that the metric has plunged recently.
Because the graph under will clearly exhibit, excessive worry dominates the present market part. It has been under 30 since January 22, when BTC’s correction started. After Saturday’s market-wide crash, during which over $2.5 billion price of leveraged positions had been worn out, the index has gone to 14 – the bottom ranges since mid-December.
In the event you missed the occasions that transpired on Saturday, this is a fast recap. BTC had recovered some floor to $84,000 after the Thursday crash, however then immediately plunged to $75,500, which turned its lowest price ticket since final April. This meant that BTC had dropped by $20,000 since January 18, when it stood at $95,500. The altcoins adopted swimsuit yesterday with huge declines, as many marked lows not seen in over a 12 months.
Blessing in Disguise?
Earlier than we decide that BTC is lifeless once more, based on the Concern and Greed Index, let’s take you again to the immortal funding phrases by one of many greats, Warren Buffett, who has stated prior to now that individuals ought to be grasping when others are fearful, and vice versa.
If he’s to be believed, and historical past is on his facet on this, now could be the time to be grasping and enter the ecosystem, proper? Earlier events on which BTC (or different property) have skilled wild swings in investor sentiment have led to nearly fast reversals.
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Robert Kiyosaki additionally weighed in on this subject, outlining the variations between the wealthy and the poor. He believes the primary group goes on a buying spree when the monetary markets “are on sale” (which means, a crash), whereas the second tends to promote and run.
DIFFERENCE BETWEEN Wealthy Folks and Poor Folks:
When Walmart has a SALE poor folks rush in and purchase, purchase, purchase.
But when the Monetary Asset Market has a sale….aka…..CRASH…
the poor promote and run….whereas the wealthy rush in….and purchase, purchase, purchase.The gold, silver, and Bitcoin…
— Robert Kiyosaki (@theRealKiyosaki) February 1, 2026
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