It’s nearly troublesome to think about that simply a few weeks in the past, bitcoin was using excessive above $95,000, and the neighborhood was speculating a couple of potential run towards a six-digit value territory for the primary time in 2026.
Not solely did that rally fail to materialize, however the bears wakened in the midst of winter and initiated a number of consecutive leg-downs that in the end crashed BTC to a multi-month low. With that, the general sentiment plummeted as nicely.
Concern and Greed Goes South
The favored Bitcoin Concern and Greed Index gathers knowledge from numerous sources, resembling general volatility, market momentum, BTC dominance, and social media feedback, to find out the present investor and neighborhood sentiment towards the biggest digital asset. Worth fluctuations and market momentum are chargeable for 50% of the ultimate end result, which ranges from 0 (excessive worry) to 100 (excessive greed). This makes it moderately logical that the metric has plunged currently.
Because the graph beneath will clearly reveal, excessive worry dominates the present market section. It has been beneath 30 since January 22, when BTC’s correction started. After Saturday’s market-wide crash, through which over $2.5 billion price of leveraged positions had been worn out, the index has gone to 14 – the bottom ranges since mid-December.
When you have missed the occasions that transpired on Saturday, right here’s a fast recap. BTC had recovered some floor to $84,000 after the Thursday crash, however then all of a sudden plunged to $75,500, which turned its lowest price ticket since final April. This meant that BTC had dropped by $20,000 since January 18, when it stood at $95,500. The altcoins adopted go well with yesterday with huge declines, as many marked lows not seen in over a yr.
Blessing in Disguise?
Earlier than we decide that BTC is useless once more, based on the Concern and Greed Index, let’s take you again to the immortal funding phrases by one of many greats, Warren Buffett, who has mentioned up to now that folks ought to be grasping when others are fearful, and vice versa.
If he’s to be believed, and historical past is on his facet on this, now can be the time to be grasping and enter the ecosystem, proper? Earlier events on which BTC (or different belongings) have skilled wild swings in investor sentiment have led to nearly speedy reversals.
Robert Kiyosaki additionally weighed in on this subject, outlining the variations between the wealthy and the poor. He believes the primary group goes on a buying spree when the monetary markets “are on sale” (which means, a crash), whereas the second tends to promote and run.
DIfFERENCE BETWEEN Wealthy Individuals and Poor Individuals:
When Walmart has a SALE poor folks rush in and purchase, purchase, purchase.
But when the Monetary Asset Market has a sale….a.okay.a…..CRASH…
the poor promote and run….whereas the wealthy rush in….and purchase, purchase, purchase.The gold, silver, and Bitcoin…
— Robert Kiyosaki (@theRealKiyosaki) February 1, 2026
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