Crypto sentiment has dropped to its most fearful level in over eight months, as ongoing macroeconomic uncertainty continues to rattle market participants. However, crypto analysts anticipate that this bearish mood will be short-lived.
The Crypto Fear & Greed Index, which measures overall market sentiment, posted an “Extreme Fear” score of 10 in its Saturday update — the lowest it has seen since February 27. This drop coincided with Bitcoin (BTC) falling below $95,000 on Friday and remaining under $96,000 at the time of publication, according to CoinMarketCap.
The February low followed a tumultuous period when spot Bitcoin ETFs experienced their worst-ever single-day outflows of $1.14 billion. During that time, Bitcoin’s price plunged from $102,000 at the beginning of the month to $84,000.
### Indicators Suggest Market Is Less Bearish Than Previous Downturns
Crypto market participants often use sentiment indexes to gauge the broader market’s sentiment toward the sector. These indexes help inform decisions on whether conditions favor buying or selling. However, Andre Dragosh, Bitwise’s European head of research, argues that the current situation isn’t as bleak as it may seem compared to past downturns.
“Sentiment index is bearish but less so than during previous corrections despite lower prices,” Dragosh stated in a recent X post, pointing to Bitwise’s crypto sentiment index, which shows signs of a potential reversal. “Our Cryptoasset Sentiment Index also continues to show a positive divergence,” he added.
### Ongoing Macroeconomic Uncertainty
While US President Donald Trump recently signed a bill ending the longest government shutdown in US history—an event some crypto market participants blamed for recent volatility—uncertainty remains around the US Federal Reserve’s upcoming interest-rate cut decision. This decision is often closely linked to movements in the crypto market.
### Bitcoin Chart Indicates “Potentially Positive” Move Ahead
Sven Henrich, founder of NorthmanTrader, shared with his 503,400 X followers on Friday that Bitcoin’s price chart is showing “something potentially positive” for Bitcoin bulls. He highlighted a “falling wedge” pattern accompanied by positive divergence as signs pointing toward a favorable outcome.
Additionally, a Messari research manager known online as “DRXL” remarked on the unusual disconnect between headlines and market sentiment. “In my eight years working in the crypto industry, I have never seen such dissonance between the headlines and the sentiment,” he said. “Everything we once dreamed of is happening, yet it somehow feels… over.”
### Analysts View Lack of Year-End Surge as Healthy
Some analysts interpret the absence of a rapid year-end price surge as a healthy sign for the market’s long-term stability. Matt Hougan, Bitwise’s Chief Investment Officer, recently told Cointelegraph, “The biggest risk was [if] we ripped into the end of 2025 and then we got a pullback.”
As uncertainty continues, investors and traders will be closely watching both sentiment indicators and technical charts for signals of the market’s next move.
https://bitcoinethereumnews.com/crypto/crypto-fear-and-greed-index-falls-to-lowest-score-in-8-months/