Crypto Market’s Extreme Fear Signals Potential Bitcoin Bottom?

The CMC Crypto Fear & Greed Index has plummeted to a new 200-day low of just 20, signaling extreme fear in the crypto market. This marks only the third such occurrence since the index launched in 2023 and echoes previous periods where Bitcoin saw significant rebounds. History suggests that when this level is reached, it often precedes price increases, as seen during March and April 2025. The recent sharp decline in Bitcoin’s value has triggered massive liquidations from leveraged positions. However, on-chain data continues to show accumulation from long-term holders, suggesting conviction within the market despite the current short-term panic selling.