Bitcoin has plunged below $67,000, triggering the lowest readings on the Crypto Fear & Greed Index since early April and signaling what analysts describe as “extreme fear” across digital asset markets.
The Fear & Greed Index scored 11/100 on Wednesday, down sharply from 29/100 on Monday. Readings below 25 are classified as extreme fear on the 1-to-100 scale. The collapse in sentiment comes as Bitcoin has underperformed U.S. stocks, which reached new all-time highs on Tuesday with the S&P 500 finishing at record levels.
Cryptic Trades, an analysis account on X, framed the extreme reading as a contrarian signal. “A relief rally on $BTC IS COMING. We’ve reached max fear, which is a good sign,” the account posted on Wednesday.
The Index’s score more than halved in two days, reflecting a sharp deterioration in market psychology. The previous local high on the Fear & Greed Index occurred on May 12, when Bitcoin traded above $80,000. That represented the last sustained period of less fearful sentiment before the current decline.
Cryptic Trades attributed the bearish mood to structural disengagement. “Engagement is low, the sentiment is terrible, the social media interest has collapsed, and bearishness is everywhere. Ironically, that is exactly why I continue to remain bullish on the high timeframes,” the account said.
The analysis suggests that depressed sentiment may create conditions for a rebound. Cryptic Trades predicted that once macroeconomic and geopolitical conditions stabilize and the AI narrative softens, liquidity could begin rotating toward underperforming assets. “At some point, once the macro and geopolitical backdrop becomes more stable and the AI narrative softens, I expect liquidity to begin rotating toward assets that have lagged behind. When that happens, I believe crypto has the potential to become one of the main catch-up assets,” the account stated.
Bitcoin’s weakness relative to equities has persisted over recent weeks. The cryptocurrency’s inability to keep pace with record stock market gains has weighed on risk appetite across digital assets, even as traditional markets have surged.
The Fear & Greed Index uses a basket of indicators to produce a normalized sentiment gauge. A week prior to May 12, the Index had returned to neutral territory for the first time since January, marking a brief reprieve before the recent collapse.
