Crypto sentiment has fallen to its most fearful point in more than eight months as uncertainty around U.S. economic policy continues to weigh on digital assets.
The Crypto Fear & Greed Index posted an “Extreme Fear” score of 10 on Saturday — its lowest since Feb. 27 — after Bitcoin dropped below $95,000 on Friday and has struggled to reclaim $96,000, according to CoinMarketCap.
February’s similar low coincided with the worst single-day outflows from U.S. spot Bitcoin ETFs, when $1.14 billion exited the market and BTC fell from $102,000 to $84,000.
Analysts say conditions are weak, but not as bad as past downturns
Andre Dragosh, head of research for Bitwise Europe, noted that sentiment is bearish but not as extreme as previous corrections despite prices falling further this time. Bitwise’s own sentiment index is starting to show early signs of reversal, he said.
The market remains cautious even after President Donald Trump signed a bill ending the longest government shutdown in U.S. history — a factor some traders had previously blamed for heightened volatility. Attention now shifts to the Federal Reserve’s next interest-rate decision, which often influences crypto risk appetite.
Charts show possible bullish setups emerging
NorthmanTrader founder Sven Henrich highlighted a falling wedge and positive divergence on Bitcoin’s chart, calling the pattern “potentially positive” for bulls.
A Messari research manager known as “DRXL” said he has “never seen such dissonance between the headlines and the sentiment,” noting that despite major industry progress, the mood feels unusually heavy.
Bitwise CIO Matt Hougan added that a lack of a year-end rally may actually be healthy: “The biggest risk was if we ripped into the end of 2025 and then we got a pullback.”
