Matrixport: Bitcoin Fear Index Drops to 9%, Reaching Extreme Fear Zone; May Signal Short-Term Rebound but Market Sentiment Remains Fragile

Jinse Finance reported that Matrixport released its daily chart analysis, stating, "Our real-time Bitcoin Greed and Fear Index (currently reading at 9%) has once again dropped below 10% (the index ranges from 0% to 100%)—historically, this level marks the market entering an 'extreme fear' state. From a strategic perspective, after such readings appear, the market often experiences a short-term rebound, so this could also serve as a contrarian bullish signal. However, we would prefer to see the 21-day moving average of this index also bottom out and rebound, which has not yet occurred. Coupled with last week's $1.2 billions outflow from Bitcoin exchange-traded funds (BTC ETF), ongoing market uncertainty, and Bitcoin's price remaining below the 21-day moving average, current market sentiment remains fragile. Until a clear macroeconomic or policy catalyst emerges to change the market narrative, maintaining a cautious stance remains the prudent approach."