Sentiment in the crypto market has plummeted to its lowest point in nearly six months following US President Donald Trump’s announcement of a 100% tariff on China.
The Crypto Fear & Greed Index dropped to a “Fear” level of 27 in Saturday’s update, reflecting a decline of 37 points from Friday’s “Greed” level of 64.
This downturn coincided with Bitcoin (BTC) briefly falling to $102,000 on the Binance perpetual futures pair after Trump’s tariff announcement on Friday.
In the last 24 hours, around $19.27 billion worth of long and short positions have been liquidated across the crypto market, according to CoinGlass.
Analyst indicates strong “buying signal” in the crypto market
Bitwise’s European head of research, Andre Dragosch, announced on Friday that the company’s intraday crypto asset Sentiment Index has just “generated a strong contrarian buying signal.”
“The index reached an intraday low of -2.8 standard deviations – its lowest point since the ‘Yen Carry Trade Unwind’ in the summer of 2024,” Dragosch noted.
The last time the Crypto Fear & Greed Index was at this level was April 16, shortly after Bitcoin dropped to $77,000 amid growing trade tension uncertainties.
A few days earlier, on April 9, Trump had announced a 90-day pause on increased reciprocal tariffs, lowering them back to the 10% baseline for most countries.
Earlier this week, the Index had indicated “Greed” territory when Bitcoin hit new highs of $125,100 on Monday.
No euphoria despite Bitcoin’s recent highs
However, Santiment analyst Brian Quinlivan commented on Friday that Bitcoin’s recent all-time highs did not spark as much enthusiasm on social media as previous milestones.
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“The reaction from the crypto audience was quite modest and unremarkable,” Quinlivan stated in an interview with the Thinking Crypto podcast released on YouTube, referring to the social media comments following Bitcoin’s new highs of $125,100 on Monday.
“There was really not much of a reaction,” Quinlivan added. “It’s far less euphoric than past instances,” he emphasized.
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