Bitcoin is bleeding again—down sharply from its 2025 highs, now hovering around the $68K zone after a brutal 50%+ drawdown. The Crypto Fear & Greed Index has plunged to **8** (Extreme Fear), echoing those gut-wrenching lows from past cycles like COVID crash (8), Terra/Luna, and FTX winters. This isn't new; it's painfully familiar.
The breakdown feels like déjà vu because Bitcoin thrives on these fear spikes. Historically, when sentiment hits single digits, capitulation kicks in—weak hands sell at loss, whales accumulate quietly, and rebounds follow. Last time fear dipped this low (e.g., 5-9 range in early 2026), it marked major bottoms, with explosive recoveries of 150%+ in months ahead.
But most traders miss the real signal: **this extreme fear is often the contrarian buy zone**, not the end. Panic selling creates asymmetry—shorts get squeezed on any bounce, while longs rebuild at discounted levels. On-chain data shows heavy loss-taking and institutional outflows, yet long-term holders stay firm.
Don't chase the bottom blindly, but recognize the pattern: Fear at 8 screams opportunity, not doom. Stack sats patiently; history favors the bold when everyone else panics.
What are you doing in this fear storm—HODLing, buying dips, or waiting? #Bitcoin #Crypto #FearAndGreed