Bitcoin Returns to Extreme Fear Zone, What’s the Impact?

Jakarta, Pintu News – In recent months, the cryptocurrency market, especially Bitcoin (BTC), has experienced a lot of pressure. The Crypto Fear and Greed Index shows that more than 30% of the time in the past year was in a state of extreme fear or dread. Currently, Bitcoin is struggling to maintain a value above $90,000, with the index registering a 17, which signifies extreme fear.

Bitcoin Market Dynamics

Since the liquidation crash in October, market sentiment towards Bitcoin (BTC) has continued to be in an unfavorable state. A 36% drop in price from its October peak has left many investors in a state of caution. Despite hitting a local low of around $80,000 in November, no meaningful recovery has taken place in the market.

This was compounded by the appearance of a death cross in November, where the 50-day moving average fell below the 200-day moving average. This pattern has proven to be an important indicator in the current market cycle, often marking a significant local low.

Also Read: Bitcoin, Ether, and XRP Decline Increases Toward the End of 2026, Why?

Comparison with the US Stock Market

Not only in the cryptocurrency market, fear is also dominating investor psychology in the US stock market. The CNN Fear and Greed Index is currently at 42, indicating the presence of fear despite the S&P 500 hovering around 6,827, just a few percent below its record high.

This suggests similar uncertainty among investors in both markets. This difference in market reaction is interesting to observe, given that both markets are often considered barometers of global economic sentiment. Although the two markets performed differently, fear remains a common theme that haunts investors.

Implications for Investors

With market conditions full of uncertainty, investors need to be more cautious in making investment decisions. Prolonged fear can lead to high market volatility, which in turn can significantly affect the value of investments.

Therefore, it is important for investors to monitor market developments and adjust their strategies accordingly. In addition, understanding patterns such as the death cross and how they impact the price of Bitcoin (BTC) can provide valuable insights. Investors who can identify and react to these signals may be better able to manage risk in their portfolios.

Conclusion

In conclusion, the Bitcoin and US stock markets are currently experiencing a period of high uncertainty, with market sentiment trending towards fear. Investors are advised to remain vigilant and follow market developments to make informed decisions in managing their investments.

Also Read: 7 Bitcoin (BTC) Facts Drop to Around $85,000, New Losses in the Global Crypto Spotlight

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FAQ

What is the Crypto Fear and Greed Index?

The Crypto Fear and Greed Index is a market sentiment indicator that measures investor emotions based on volatility, volume, social media, and market trends. A low score indicates fear, while a high score signifies greed.

Why is Bitcoin (BTC) in a state of extreme fear right now?

Based on the latest data, Bitcoin is in the extreme fear zone due to continued price pressure, a significant drop from the October peak, as well as global macroeconomic uncertainty affecting the cryptocurrency market.

What does an index score of 17 mean for the Bitcoin market?

A score of 17 reflects extreme fear, indicating the majority of market participants are on the defensive and tend to hold back on buying activity. This is often associated with high volatility and a lack of short-term confidence.

What is a death cross on Bitcoin?

A death cross is a technical condition when the 50-day moving average drops below the 200-day moving average. This pattern has historically been associated with a bearish trend or price weakness in the medium term.

When did the latest Bitcoin death cross occur?

Bitcoin’s death cross was recorded in November, after a sharp price drop following the October liquidation crash. This data is one of the important indicators that market participants monitor.

How does Bitcoin sentiment compare to the US stock market?

Although US stock markets like the S&P 500 are still close to their highs, the fear index shows stock investors are also on edge. This signals uncertainty not only in the cryptocurrency market, but also in traditional financial markets.

What are the implications of this for crypto investors?

Extreme fear conditions increase the risk of sharp price volatility. Investors generally monitor technical indicators and market sentiment to understand potential risks in portfolio management.

Does extreme fear always signal a certain price direction?

Extreme fear does not directly determine price direction, but reflects the psychological state of the market. In some cycles, this phase has coincided with the formation of a local low, although not always consistently.

Why is market sentiment monitoring important in cryptocurrency?

The cryptocurrency market is heavily influenced by investor psychology. Understanding sentiment helps market participants identify periods of high volatility and adjust risk management strategies accordingly.

Reference

• Coindesk. Fear and Greed Index in Fear: 30% of the Past Year, Bitcoin Back in Extreme Fear. Accessed on December 18, 2025