Fear index fuels ‘extreme fear’ as Bitcoin price plummets to $107,000

bitcoin magazine

Fear index fuels ‘extreme fear’ as Bitcoin price plummets to $107,000

Bitcoin prices fell to the $107,000 level as all markets entered a marked cautionary phase.

According to the Bitcoin Fear and Greed Index, sentiment is currently at 28/100, firmly in the “fear” category. If sentiment falls below 25/100, the market will fall into the “extreme fear” category.

The index measures market sentiment on a scale of 0 (extreme fear) to 100 (extreme greed) and is a barometer of investor sentiment, highlighting when Bitcoin may be undervalued or overvalued.

The current “fear” and subsequent decline in the market may be related to the rising trade tensions between the US and China. President Donald Trump is scheduled to address the nation from the Oval Office on Thursday at 3pm ET, but details of his announcement are unclear.

The Fear & Greed Index has become a popular tool for investors and traders looking to separate their emotions from broader market movements.

When fear prevails, it often signals a buying opportunity, as investors can overreact to falling prices.

Conversely, periods of extreme greed can indicate overheating and increased risk.

For context, when the price of Bitcoin exceeded $124,000 almost two weeks ago, the index’s price was above 70, which puts it in the “greedy” category, according to data from Bitcoin Magazine Pro.

recent bitcoin price

Bitcoin’s recent pullback follows a volatile period in which the asset soared to all-time highs and then retreated.

Over the past few days, Bitcoin has hovered between $110,000 and $112,000, rebounding from oversold levels on the Advanced NVT signal for the first time since the $75,000 mark.

According to Bitcoin Magazine Pro, these measurements suggest that Bitcoin may be temporarily undervalued compared to its network activity. Bitcoin may remain range-bound as traders are reluctant to put money into the market as fear reigns.

In stark contrast, gold continues to climb wildly, hitting new all-time highs near $4,270 an ounce. The metal is up about 60% year-to-date, outpacing Bitcoin’s roughly 20% growth and reinforcing its position as a safe-haven asset.

Currently, the divergent trajectories of Bitcoin and gold indicate a split between risk-on and risk-off assets. Bitcoin’s Fear & Greed Index of 28 does indeed indicate rising market anxiety, while gold continues to attract investors seeking stability.

The post Bitcoin Price Crash to $107,000 as Fear Index Toys with ‘Extreme Fear’ was originally published in Bitcoin Magazine and written by Micah Zimmerman.

Source: https://bitcoinmagazine.com/markets/bitcoin-price-crashes-to-107000