A multi-day ‘extreme fear’ reading in a broadly followed mood index may be a sign that Bitcoin prices are setting a bottom before moving higher in the coming weeks-with a previously similar set up prior to an increase of 200% in BTC.

Fear and greed index that measures investor emotions in markets such as Bitcoin ranging from 0 (lowest mood) to 100 (highest mood) has shown an expanded ‘extreme fear’ reading in the last several days as prices whipped between $ 83,000 and $ 95,000 levels.

The index helps identify whether investors are too scared (potential shopping) or too greedy (possible market correction), and tends to act as a counter -indicator in the short term. It is based on pricing volatility and momentum, mood on social media, Google Trends data and Bitcoin’s overall market share.

“Bitcoin’s leap into ‘Extreme Fear’ on the Fear & Greed Index, its first since September 2024, when BTC traded for $ 53K, repeating a pivotal historically low,” Vincent Liu, CIO of the trading company Kronos Research, told Coindesk in a telegram resort. “At that time, Bitcoin’s value doubled over the next three months and hinted at a potential opportunity for knowledgeable investors.”

“In the midst of today’s market volatility, driven by trade tariffs and wider macroeconomic uncertainties, this moment could arise as a golden entry point, provided global merchant stresses facilitate and overall economic moods forces,” added Liu.

Bitcoin and several major tokens, including Cardanos Ada, Solana’s Sun and XRP (XRP), rose Sunday following President Trump’s announcement of an American crypto strategic reserve.

But the original tension was short-lived due to profits in the middle of the lack of concrete plans and a risk-off mood in wider stock markets.

Trump’s customs duties on Canada, Mexico and China influenced the markets further, and dealers are now waiting for more clarity from the upcoming Crypto summit for the White House for signals of future positioning.