Cryptocurrency market sentiment fell to its lowest level in about six months after US President Donald Trump announced 100% tariffs on China.
The Crypto Fear & Greed Index, which measures overall market sentiment, fell to a “fear” level of 27 in Saturday’s update, down 37 points from Friday’s “greed” reading of 64.
The decline comes after Bitcoin (BTC) briefly fell to $102,000 on Binance’s perpetual futures pair following President Trump’s sweeping tariff announcement on Friday.
According to Coinglass, approximately $19.27 billion worth of long and short positions were liquidated across the cryptocurrency market in the past 24 hours.
Analysts say the virtual currency market is sending a strong “buy signal”
In a Friday post on X, Bitwise European head of research Andre Dragos said the company’s intraday crypto sentiment index had “generated a strong contrarian buy signal.”
“The index reached its lowest intraday level with a standard deviation of -2.8. This is the lowest level since the ‘yen carry trade unwinding’ in the summer of 2024,” Dragos said.
The last time the Crypto Fear & Greed Index was this low was on April 16th, shortly after Bitcoin fell to $77,000 amid heightened uncertainty over trade tensions.
Just a few days ago, on April 9, President Trump announced a 90-day moratorium on reciprocal tariff increases, returning tariffs to the 10% standard for most countries.
Earlier this week, the index was in “greed” territory after Bitcoin reached a new high of $125,100 on Monday.
Bitcoin’s recent highs haven’t brought euphoria
However, Santiment analyst Brian Quinlivan noted on Friday that Bitcoin’s recent highs did not spark as much enthusiasm on social media as previous highs.
Related: Bitcoin Mayer Multiple: BTC Price Could Reach $180,000 Before Becoming ‘Overbought’
“It seemed like a subdued, run-of-the-mill reaction from the crypto audience,” Quinlivan said in an interview on the Thinking Crypto podcast published Thursday on YouTube, referring to the level of bullish comments across social media after Bitcoin hit a new high of $125,100 on Monday.
“It wasn’t really a big deal,” Quinlivan said. “It’s not as euphoric as my previous work,” he added.
Magazine: EU’s privacy-destroying chat control bill postponed – but the fight isn’t over
