Last week, the price of Bitcoin dropped to $60,000, which obviously caused investor sentiment to plummet. Now, while sentiment has been dwindling for the better part of five months, what stands out this time is the low performance of the Bitcoin Fear & Greed Index. In fact, sentiment around the cryptocurrency market has dropped so low that it has reached a point that has only been hit twice in Bitcoin’s history.

Bitcoin’s fear and greed index drops to 9

Market sentiment has been volatile since reaching an all-time high of $126,000 in August 2025, but it now appears to have set a direction. The trend was mostly down and then the index dropped to a low of 9 last week.

Bitcoin Fear and Greed Index tracks market sentiment using a number of factors such as public sentiment and volume, among others. It therefore provides a fairly comprehensive picture of investors’ attitudes towards the market. The index ranges from 1-100, where 100-75 is extreme greed, 74-54 is greed, 53-47 is neutral, 46-26 is fear, and 25-1 is extreme fear.

There is extreme fear in the market right now, which means investors are cautious about entering the market. More importantly, however, the last two times market sentiment was this low was the 2018-2019 bear market and then the FTX cryptocurrency exchange crash in 2022.

What’s compelling about these two different posts in the story is what happened after sentiment dropped to such low levels. The initial reaction to this seems to be very similar, each time tending to accumulate for a long time. Typically, this trend continues for several months, suggesting that the market is using this time to gain momentum.

However, like clockwork, there has been a steady upward move, which means sentiment this low could spell the end of a bear market. This then leads to the start of a bull market, and the following year the price often reaches novel all-time highs.

Taking advantage of this trend, it is likely that the price of Bitcoin has reached or is close to reaching rock bottom. In such a case, the next course of action could be a long period of accumulation, which would inevitably lead to the start of another bull market. However, it is critical to remember that there have been times when Bitcoin has deviated from the established historical trend as novel investors and macro factors began to influence financial markets.

Featured image from Dall.E, chart from TradingView.com