Bitcoin's Crypto Fear and Greed Index Hits 10 Amid Price Drop

The Crypto Fear and Greed Index has hit 10, indicating extreme fear levels not seen since past cycle bottoms. This reading comes after the index fell from neutral (47) to extreme fear in a short period, with Bitcoin's price dropping to near $62,500.

According to a Glassnode chart shared by analyst BitcoinVector, momentum fell below the +0.5 threshold well before the price broke down. The same chart shows spot demand weakening at that moment, with cumulative volume delta flipping to roughly negative 1,000.

BitcoinVector argues that the order of events matters, stating that momentum weakens first, spot demand fades second, and price breaks last. This is supported by a recent chart from BitboBTC, which colors Bitcoin price data by its fear reading and shows that deep extreme-fear values cluster almost only at major lows.

A recovery may be triggered by a reclaim of -0.5 momentum, as suggested by an earlier Swissblock chart. Until then, the market remains in a fragile state, with some analysts urging patience at similar readings.