Bitcoin Price Plummets to $107,000 Amid Rising “Extreme Fear” in Market Sentiment

Bitcoin Magazine

Bitcoin Price Plummets to $107,000 Amidst “Extreme Fear” Concerns

The price of Bitcoin has dropped to around $107,000 as all markets brace for significant caution.  

As per the Bitcoin Fear & Greed Index, the current sentiment stands at 28/100, firmly placing it in the ‘Fear’ zone.  A shift to the ‘Extreme Fear’ category would occur if sentiment dips below 25/100.

This index, measuring market emotions from 0 (extreme fear) to 100 (extreme greed), serves as an indicator for investor sentiment, marking moments when Bitcoin could be undervalued or overbought.

The present market fear and subsequent sell-off might be tied to escalating trade tensions between the U.S. and China. President Donald Trump is scheduled to make a national address from the Oval Office on Thursday at 3 p.m. EST, although details of the announcement remain unclear.

For investors and traders, the Fear & Greed Index has become a vital tool for mitigating personal emotions against broader market trends. 

When fear prevails, it often signals potential buying opportunities, as investors may be overselling in response to price declines. 

On the flip side, periods marked by extreme greed can indicate overheating and increased risk.

As a point of reference, when Bitcoin was trading above $124,000 nearly two weeks ago, the index was above 70, signaling the ‘greed’ category, according to Bitcoin Magazine Pro data. 

Recent Bitcoin Price Movements

Bitcoin’s recent decline follows a turbulent period where the asset achieved all-time highs before retracting. 

In recent days, Bitcoin has fluctuated between $110,000 and $112,000, rebounding from oversold levels on the Advanced NVT Signal for the first time since the $75,000 point. 

Data from Bitcoin Magazine Pro indicates that these readings may suggest Bitcoin is temporarily undervalued compared to its network activities. As fear grips the market, traders may hesitate to invest, resulting in Bitcoin’s confined trading range.

In stark contrast, gold continues its impressive ascent, reaching new all-time highs near $4,270 per ounce. The metal’s nearly 60% year-to-date gain has eclipsed Bitcoin’s approximate 20% increase, solidifying its reputation as a safe-haven asset.

Currently, the diverging paths of Bitcoin and gold reflect the division between risk-on and risk-off assets. Bitcoin’s Fear & Greed Index reading of 28 highlights the prevailing market anxiety, while gold remains a magnet for investors seeking stability. 

This article, “Bitcoin Price Plummets to $107,000 Amidst ‘Extreme Fear’ Concerns,” first appeared on Bitcoin Magazine and was written by Micah Zimmerman.