The CMC Crypto Fear and Greed Index fell below 50, reaching its lowest point since October 14. This decline coincides with BitcoinIt is BTC/USD the price falls below $92,000, marking a notable change in market sentiment.
What happened: As of 3:20 a.m. ET on Friday, Bitcoin was trading at $94,708.791 while the index stood at 42. The CMC Fear and Greed Index, a proprietary tool for CoinMarketCapgauges the prevailing sentiment in the cryptocurrency market. This index, ranging from 0 to 100, reflects the emotional state of the market, influencing investor behavior.
A lower index value means extreme fear, while a higher value suggests extreme greed. The index helps investors assess whether the market is potentially undervalued or overvalued. This recent drop in the index suggests a shift toward fear among market participants, which could impact buying and selling decisions.
Why it matters: The recent slowdown in Bitcoin price and market sentiment comes amid volatility in the cryptocurrency space. Like Bitcoin ETFs celebrated their first anniversarythey demonstrated the unpredictability of the crypto market. THE Grayscale Bitcoin Trust GBTC And iShares Bitcoin Trust IBIT have experienced fluctuating fortunes, reflecting the instability of the market as a whole.
Furthermore, the economist Pierre Schiff recently criticized Bitcoin’s reputation as a safe haven. In a statement, Schiff argued that Bitcoin is “the riskiest asset,” calling into question its perceived role as a safe haven during times of economic uncertainty. His comments highlight the ongoing debate over Bitcoin’s position in the financial ecosystem, especially as traditional safe havens like gold remain favored by some investors.
Price action: According to BenzingaPro data, over the past seven days, Bitcoin has fallen 1.8%, Dogecoin DOGE/USD fell 0.3% while Shiba Inu SHIB/USD experienced a 3.9% decline on Friday before the market.
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