In brief
Sentiment in the crypto market has flipped back to “extreme fear” as Bitcoin falls.
The top crypto asset dipped below $69,000 Thursday morning.
Nevertheless, predictors on Myriad favor a jump to “neutral” sentiment ahead of a fall to a strong “extreme fear” rating.
Crypto market sentiment has shifted back to “Extreme Fear” as Bitcoin has fallen below $70,000, giving up recent gains that some traders hoped signaled a return to greener pastures.
The top crypto asset provided traders with a brief spike above $75,000 earlier this week on Monday, but the momentum was short-lived as BTC is trading around $69,340 on Thursday according to CoinGecko data, down around 3% in the last 24 hours of trading after dropping to an intraday low under $69,000.
As it trends lower, sentiment has flipped from “Fear” to “Extreme Fear” on Alternative.me’s Crypto Fear and Greed Index, which captures sentiment using a variety of metrics like social media posts, market trading volumes, and volatility.
Despite the shift, prediction market participants think a greedier, more steady feeling may hit the market soon.
Predictors on Myriad, the prediction market from Decrypt’s parent company, favor a jump from its current standing at “28” to “55” or a “Neutral” index value at 59% for CoinMarketCap’s Fear and Greed Index. This compares to 41% odds that market sentiment will fall to “5” or “Extreme Fear” on the index.
Even a jump to “Neutral” would represent a significant shift in sentiment among market participants. In February, both Fear and Greed Indexes were sitting at or near all-time lows and strongly positioned in “Extreme Fear” as Bitcoin traded below $63,000.
Around that time, Google searches for “Bitcoin going to zero” and “Is Bitcoin dead?” were on the rise, hitting their highest levels since 2022 according to Google Trends data.
Could Bitcoin drop lower?
While traders might believe the worst is behind the crypto market, earlier expert analysis has suggested that lower marks could still be ahead for BTC.
For example, analysts at Standard Chartered forecasted that before reaching $100,000 again, Bitcoin would dip to $50,000. Analysis from CryptoQuant noted that when comparing trends from previous bear markets, Bitcoin’s “ultimate bear market bottom” would be around $55,000.
What’s next for the top crypto asset though? Predictors on Myriad are evenly split on whether a pump to $84,000 or a dump to $55,000 is the next move for BTC—with their odds of it achieving the upside outcome dropping by over 10% on the day.
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