Crypto market sentiment has plunged to its lowest point in nearly six months after U.S. President Donald Trump announced a 100% tariff on China.
According to Saturday’s update of the Crypto Fear & Greed Index, overall market sentiment slid to a “Fear” level of 27, marking a sharp drop of 37 points from Friday’s “Greed” reading of 64.
The downturn followed Bitcoin’s brief dip to $102,000 on the Binance perpetual futures pair after Trump unveiled the sweeping tariff measures on Friday.
In the past 24 hours, roughly $19.27 billion worth of long and short positions have been liquidated across the crypto market, according to CoinGlass.
Analyst: Crypto market flashing a strong “buy” signal
In an X post on Friday, Andre Dragosch, head of research for Bitwise Europe, said the firm’s Intraday Crypto Asset Sentiment Index had just “triggered a strong contrarian buying signal.”
“The index dropped to an intraday low of -2.8 standard deviations — its lowest level since the ‘Yen Carry Trade Unwind’ in the summer of 2024,” Dragosch noted.
The Crypto Fear & Greed Index hasn’t been this low since April 16, when Bitcoin plunged to $77,000 amid growing uncertainty over trade tensions.
Just a week earlier, on April 9, President Donald Trump had announced a 90-day pause on higher reciprocal tariffs, temporarily reverting most rates to a 10% baseline.
Earlier this week, the index was still in “Greed” territory as Bitcoin surged to new highs of $125,100 on Monday.
Bitcoin’s highs failed to spark euphoria
However, Santiment analyst Brian Quinlivan noted on Friday that Bitcoin’s latest all-time highs didn’t generate the same level of excitement across social media as previous record runs.
“It was more of a modest, run-of-the-mill reaction from the crypto crowd,” Quinlivan said in an interview with the Thinking Crypto podcast, published on YouTube Thursday.
“Really wasn’t much of anything,” he added. “It’s nowhere near as euphoric as some of the previous rallies.”
