Bitcoin Plunges to Extreme Fear Levels, Analysts See Opportunity

Bitcoin's Fear and Greed Index has plummeted to levels not seen since the collapse of FTX, but analysts remain optimistic about the cryptocurrency's prospects. The index, which measures market sentiment, has dropped to 10, indicating extreme fear among investors. This is lower than the levels seen during the FTX collapse in November 2022.

Bitcoin's price has been under significant selling pressure, falling below $83,000 earlier today. This has extended the cryptocurrency's weekly losses to over 12.66%. The market is currently in a state of panic selling, with a large number of investors liquidating their positions. However, analysts believe that this extreme fear condition could create an ideal setup for Bitcoin to regain momentum and stage a potential rebound.

As of press time, Bitcoin's price is trading at $85,318, down 3.8% from its previous level. Daily trading volumes have crashed by 17% to $68 billion. The BTC futures open interest has dropped by 6.3% to $53.6 billion, while 24-hour liquidations have soared to $460 million, with $390.88M in long liquidation.

Bitcoin deposits to exchanges surged to $1.3 billion yesterday, signaling rising market anxiety. The significant inflow reflects a wave of traders looking to offload their positions, potentially driven by fears of further price declines or heightened volatility.

Veteran investor Robert Kiyosaki has advised investors to view the current Bitcoin price crash as a buying opportunity. He emphasized his confidence in BTC despite its volatility, blaming systemic issues in the global monetary system for broader economic instability. Kiyosaki positioned BTC, alongside gold and silver, as a hedge against what he called "fake money" and the failures of traditional financial systems.

Trade war concerns have also dragged Bitcoin's price down. Soon after President Donald Trump announced 25% tariffs on the European Union, the S&P 500 wiped out $500 billion from the market in a short moment. Bitcoin has extended its decline, falling below $83,000 for the first time in 15 weeks as trade war fears weigh on investor sentiment. As a result, fear among investors has dropped even below that of the FT