Bitcoin Sentiment Falls Below Covid and FTX Collapse Levels as Extreme Fear Deepens

Bitcoin has entered an "extreme fear" phase, with sentiment gauges now weaker than during the Covid market crash and the FTX collapse, crypto market indicators show. The Crypto Fear & Greed Index has fallen deep into the extreme fear zone as panic selling, shrinking liquidity and higher volatility weigh on confidence. Analysts note past episodes of extreme fear in March 2020 and late 2022 were followed by strong Bitcoin recoveries, and some long-term investors view current conditions as a potential buying window, though they caution outcomes are not guaranteed and thorough research and risk management remain essential.