The crypto market is experiencing a significant decline in sentiment: the fear and greed index has dropped to its lowest level in the past six months, accompanied by a massive liquidation of positions and a sharp drop in the value of Bitcoin.
This is reported by Business • Media
Record Drop in the Index and Its Impact on the Market
In October 2025, the fear and greed index, a key indicator of sentiment in the digital asset market, fell from 64 to 35 points. This corresponds to the “fear” zone, indicating a substantial deterioration in investor expectations. According to CoinMarketCap, this low level was last recorded in April 2025, when the price of Bitcoin was around $80,000.
The drop in the index coincided with a sharp correction in Bitcoin, which lost approximately 20% in value within a day, briefly falling to $102,000, according to TradingView. The total volume of liquidations during this period exceeded $19.27 billion, demonstrating the scale of the turmoil in the market.
Influencing Factors and Expert Assessments
The main trigger for the decline was a statement by U.S. President Donald Trump, who announced the imposition of 100% tariffs on imports of Chinese goods. This heightened uncertainty in global financial markets and triggered a wave of sell-offs in the cryptocurrency sector.
“The current decline could serve as a strong buying signal,” notes Andre Dragosh, head of Bitwise’s European division. According to him, the company’s sentiment index for crypto assets has dropped to -2.8 standard deviations, the lowest level since the summer of 2024, when a decline in carry trades was observed.
A similar level of fear in the market was previously recorded on April 16, after the price of Bitcoin fell to $77,000 amid increasing trading uncertainty. Just a few days prior, on April 9, Trump announced a 90-day halt to the increase of mutual tariffs, reducing the baseline rate to 10% for most countries.
Earlier this week, the index was in the “greed” zone when Bitcoin reached a new all-time high of over $125,000 on October 5.
Previously, analysts at JPMorgan Chase had predicted a potential rise in Bitcoin to $165,000.