Bitcoin had another eventful week as global uncertainty persisted in the broader financial markets. Once again, the $74,000 resistance level held strong as the cryptocurrency made a renewed attempt to break through heading into the weekend. Investor sentiment in the Bitcoin market appears to be deteriorating, with bullish momentum fading after the latest rejection. Recent on-chain data indicates that sentiment has fallen to its lowest point in nearly four years.
BTC Fear & Greed Index Drops to Levels Not Seen Since 2022
In a March 13 post on X, crypto analyst Axel Adler Jr. highlighted that the Bitcoin Fear and Greed Index has continued to decline over recent weeks. This on-chain indicator measures market sentiment and reflects certain aspects of investor behavior.
Typically, the index ranges from 0 to 100, with higher values signaling extreme greed and potentially overheated market conditions. Conversely, lower values point to extreme fear and skepticism among investors.
According to CryptoQuant data shared by Adler Jr., the 30-day average Fear and Greed Index has fallen to 10%. This level of pessimism was last seen during the market-wide crashes triggered by the COVID-19 pandemic and the collapse of the Terra (LUNA) ecosystem. As shown in the chart below, the metric has been declining since peaking above the 75th percentile in late 2025.
Adler Jr. noted on X: “Sentiment is now deeply compressed. For market structure to stabilize, Bitcoin likely needs to reclaim higher price levels.”
While an improvement in price performance could be crucial for boosting market sentiment, the current Fear and Greed Index reading may offer clues about Bitcoin’s near-term direction. Historically, the cryptocurrency has often rebounded when market sentiment hits extreme lows.
For example, during the COVID-19 crash, Bitcoin’s price recovered from around $5,000 to a new all-time high after the Fear and Greed Index fell to approximately 10%. In 2022, however, BTC did not find its bottom until several months after the index reached the 10% level, following the collapse of the FTX exchange.
In essence, such a low Fear and Greed Index reading could suggest that Bitcoin has either reached or is approaching a market bottom.
Bitcoin Price Overview
As of this writing, Bitcoin is trading around $71,262, up just over 1% in the past 24 hours.
Frequently Asked Questions
FAQs Bitcoin Fear Greed Index at COVID LUNA Crash Lows
Beginner Questions
1 What is the Bitcoin Fear Greed Index
Its a popular tool that measures the overall sentiment in the Bitcoin and crypto market It combines data like price volatility social media buzz and trading volume to give a score from 0 to 100
2 What does it mean that the index is at lows seen during COVID and LUNA crash
It means the current market sentiment is as fearful and pessimistic as it was during two major past crises the March 2020 COVID market crash and the May 2022 collapse of the Terra ecosystem This suggests investors are extremely worried
3 Is Extreme Fear a bad sign
Not necessarily While it indicates negative sentiment and potential panic selling historically periods of Extreme Fear have often presented buying opportunities for longterm investors as prices can be undervalued
4 Should I buy Bitcoin when the index is in Extreme Fear
It can be a signal to consider but never invest based on one indicator alone Its crucial to do your own research understand the risks and only invest money you can afford to lose Many see it as a time to be cautiously optimistic
5 Where can I check the current Fear Greed Index
You can find it easily by searching Crypto Fear Greed Index online Sites like Alternativeme provide the daily number and a simple chart
Intermediate Advanced Questions
6 What specific data does the index use to calculate the score
It analyzes multiple factors volatility market momentumvolume social media surveys Bitcoin dominance and trends
7 How reliable is this index as a trading signal
Its a useful sentiment gauge not a precise timing tool Markets can stay fearful longer than you expect Its best used in combination with technical analysis onchain data and fundamental research
8 What typically happens after the index hits such extreme lows
Historically these levels have often marked local price bottoms or periods of consolidation before a potential recovery However past performance doesnt guarantee future results The market needs a