The Crypto Fear & Greed Index has dropped to an "Extreme Fear" score of 10, the lowest since February 27, as Bitcoin (BTC) fell below $95,000 on Friday and failed to reclaim $96,000. This decline in sentiment is driven by ongoing macroeconomic uncertainty, including concerns over the US Federal Reserve's interest-rate decisions, and follows a period where spot Bitcoin ETFs saw record outflows.
In February, the index hit a similar low just days after spot Bitcoin ETFs experienced their worst single-day outflows of $1.14 billion, contributing to Bitcoin's drop from $102,000 to $84,000. However, analysts like Bitwise's European head of research, Andre Dragosh, noted that the current bearish sentiment is less severe than in past corrections, with Bitwise's crypto sentiment index showing positive divergence and signs of reversal.
Santiment, a crypto sentiment platform, warned that market bottoms rarely form when there is widespread consensus, as many traders are now calling for a bottom after Bitcoin's price decline. Social media sentiment has turned overwhelmingly negative, with the ratio of positive to negative Bitcoin comments at a one-month low, and mentions of Michael Saylor surging due to false rumors of Bitcoin sales, which he denied in a CNBC interview.
Technically, NorthmanTrader founder Sven Henrich pointed to a "falling wedge" pattern and positive divergence on Bitcoin's chart, suggesting potential gains for bulls. Recent spot Bitcoin ETF outflows, totaling $1.17 billion over three days—including $866 million on Thursday—may indicate a market bottom, as historical data shows such outflows often precede recoveries.
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