The 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, which measures overall market sentiment, dropped to a “Fear” level of 27 in Saturday’s update, reflecting a decrease 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 sweeping 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” for crypto market
In a post on X, Bitwise’s European head of research, Andre Dragosch, reported that the company’s intraday crypto asset Sentiment Index has just “generated a strong contrarian buying signal.”
“The index hit an intraday low of -2.8 standard deviations – its most extreme since the ‘Yen Carry Trade Unwind’ during the summer of 2024,” Dragosch noted.
The last instance when the Crypto Fear & Greed Index was this low was on April 16, shortly after Bitcoin dropped to $77,000 amid growing concerns about trade tensions.
Just days prior, on April 9, Trump had announced a 90-day suspension on increased reciprocal tariffs, reverting them to the 10% baseline for most nations.
Earlier this week, the Index was in “Greed” territory after Bitcoin achieved new highs of $125,100 on Monday.
Bitcoin’s recent peaks lacked enthusiasm
Nevertheless, Santiment analyst Brian Quinlivan highlighted on Friday that Bitcoin’s recent all-time highs did not evoke the same level of excitement on social media as previous record highs.
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“It seemed like a modest, routine response from the crypto community,” Quinlivan remarked in an interview with the Thinking Crypto podcast released to YouTube on Thursday, referring to the amount of bullish comments on social media after Bitcoin’s rise to $125,100 on Monday.
“There wasn’t really much reaction,” Quinlivan stated. “It’s not nearly as euphoric as some of these previous surges,” he added.
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