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The cryptocurrency market is currently in a state of Extreme Fear after one of the most significant liquidation events in recent months. Following last weekend’s crash, the Bitcoin Fear & Greed Index plunged to 24, marking its lowest reading in six months. The index, which gauges investor sentiment, last reached this level during the April 2025 market downturn.
The latest decline follows a $19 billion liquidation that occurred on Friday, resulting in widespread sell-offs across the cryptocurrency market. This massive event erased billions in open positions within hours. Consequently, the index shifted from a neutral 40 to a fearful 24, signaling heightened caution among traders and investors.
The index utilizes key metrics like volatility, market momentum, social media sentiment, and dominance, to gauge the prevailing sentiment within the cryptocurrency ecosystem. On its scale of 1 to 100, readings between 1 and 25 indicate Extreme Fear, while 76 and 100 represent Extreme Greed.
The shift toward fear suggests that many investors are currently hesitant to take new positions. As uncertainty rises, trading volumes remain subdued while volatility persists. The plunge to 24 confirms deep pessimism in the short term.
Last week, the CMC Crypto Fear and Greed Index showed a neutral score of 40, signaling a temporary stabilization before the sudden market downturn. It had previously recorded a yearly high of 88 (Extreme Greed) in November 2024 and a low of 15 (Extreme Fear) in March 2025.
Bitcoin’s price has closely mirrored these mood swings. It has fluctuated between $60,000 and $120,000 since mid-2023. The greed peaks aligned with rallies and fear spikes following steep corrections. As panic gripped traders last weekend, the index reflected widespread uncertainty once again.
Still, some observers note that previous declines into Extreme Fear have historically preceded major price recoveries. But can this latest downturn mark another opportunity for accumulation?
Despite the widespread caution, early signs of recovery emerged by Sunday. Bitcoin rebounded above $114,000, while Ethereum regained strength above $4,000, suggesting renewed market activity.
The Fear & Greed Index is still low, but prices appear to be stabilizing after the initial panic. Investors are reassessing market conditions before reentering. With reduced leverage and cooling volatility, the environment may slowly shift toward accumulation once more.
Historically, moments of extreme fear have often presented opportunities for buying. The April 2025 dip to similar levels was followed by a strong rally, which pushed Bitcoin to new highs by May. If patterns repeat, the current pullback could set the stage for another market surge.
As of October 2025, sentiment is fragile yet watchful. The index’s current position suggests that while fear still dominates, a recovery could already be forming beneath the surface, leaving traders to decide whether to wait or act.
The Bitcoin Fear & Greed Index’s plunge to 24 signals the strongest investor anxiety seen since April 2025. Triggered by a $19B liquidation, the crypto market briefly entered Extreme Fear before prices began stabilizing. Bitcoin’s rebound above $114,000 and Ethereum’s move past $4,000 suggest early signs of recovery.
