Fear & Greed Index drops to October levels as Bitcoin falls
Bitcoin’s price drop pushes Fear & Greed Index to 65 as market sentiment turns cautious
Bitcoin’s recent price decline has pushed the Crypto Fear & Greed Index down to 65, its lowest level since October 15, signaling waning investor confidence.
Despite remaining in greed territory, the drop reflects growing caution amid a 13.7% decline in Bitcoin’s price over the past 12 days, with the cryptocurrency hovering around $93,000 as of December 30, according to Cointelegraph.
Market Sentiment Shifts After Months of Optimism
The Crypto Fear & Greed Index, which peaked at 94 on Nov. 22 following Donald Trump’s election victory, has now reversed its upward trend. Pro-crypto sentiment in Congress and speculation about a “parabolic move” leading up to Trump’s inauguration initially drove market enthusiasm. However, recent weeks have seen profit-taking and a shift toward stablecoins, leading analysts to predict increased volatility ahead.
10x Research’s Markus Thielen expects short-term market turbulence, while veteran trader Peter Brandt proposed a “Hump Slump Bump Dump Pump” pattern. This sequence suggests Bitcoin may face further dips before potentially rebounding.
Outlook for Bitcoin and Market Volatility
Market observers remain divided, with some predicting a sharp correction and others expecting recovery post-inauguration. CryptoQuant CEO Ki Young Ju backed Brandt’s pattern analysis, suggesting Bitcoin could see fluctuations before stabilizing.
Investors are closely watching regulatory developments and institutional moves as they brace for heightened volatility entering 2025.
Recently we wrote, that in 2024, Bitcoin reached several historic milestones, including surpassing the six-digit threshold, fueled by a broader crypto rally following Donald Trump’s victory in the U.S. presidential elections.
