The current sentiment in the cryptocurrency market is extremely cautious, as indicated by the Crypto Fear and Greed Index, which has sharply declined from a level of 55 (Neutral) to 21 (Extreme Fear) within less than a week. The market’s fear has been exacerbated by the recent Bybit hack, along with growing trade tensions due to the imposition of tariffs on Mexico and Canada.
According to Simon Peters, crypto analyst at eToro, “Bitcoin had been showing resilience until it reached the $92,000 level, which had served as support since November 2024. The break below this level likely triggered a series of liquidations, intensifying the downward pressure on the price.”
The decline comes amid broader market uncertainties, and Peters believes more downward movement could occur based on historical trends. “If we look at previous bitcoin bull markets, we often see retracements of 25-35% before finding a base and starting the next upward trend. Currently, we’re down 20% from the all-time high of $109,300. A 35% drop could push bitcoin to around $70,000, though this is not a certainty,” Simon Peters, crypto analyst at eToro added.
Despite the current fear, Peters encourages long-term investors to keep perspective. “While large price movements can be concerning, they are typical in any asset class. We should remember that bitcoin is still 70% higher than it was a year ago,” he stated.
For investors with liquidity and long-term confidence in bitcoin, this correction could present an opportunity to strengthen their holdings.
