Bitcoin and the crypto market, in general, have not been doing well during the month of March 2025. Bitcoin has dropped below the 200-day simple moving average (SMA) which stood at $83,362 after sliding to Monday’s intraday low of $78,377 per coin. The leading crypto asset’s market cap stands at $1.55 trillion, which encompasses 60.2% of the $2.61 trillion crypto market cap.
According to the Crypto Fear and Greed Index (CFGI) hosted on alternative.me, the sentiment across the crypto market stands in “extreme fear” as there’s a chance the $78,000 footing may not be BTC’s bottom. Three days ago, the CFGI score stood at 34 out of 100, which equals “fear,” and today it is now a 20 out of 100 and into the “extreme fear” range.
The CFGI has not been this low in over 12 months, but it did crash lower at the end of February. On Feb. 27, 2025, the score was in the “extreme fear” zone with a 10 out of 100. Alternative.me’s CFGI description notes that the crypto market is highly emotional and the index is meant to help mitigate these emotional responses by operating on two key assumptions:
- Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.
- When Investors are getting too greedy, that means the market is due for a correction.
In a climate defined by heightened apprehension, cautious optimism may emerge from a recalibration of risk. Observers note that market fluctuations reflect underlying volatility rather than fundamental shifts, prompting some to consider measured opportunities. The current landscape highlights the value of emotional discipline, encouraging investors to balance skepticism with strategic insight as market dynamics evolve cautiously, amid shifting market sentiment.
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