It’s almost hard to believe that just a couple of weeks prior, Bitcoin was trading above $95,000, with speculations about it hitting six figures for the first time by 2026.

However, that expected rise did not happen, leading to a market downturn where Bitcoin prices plummeted to a multi-month low, significantly impacting investor sentiment.

Decline in Sentiment

The widely used Bitcoin Fear and Greed Index uses data from multiple sources, including market volatility and social media reactions, to reflect investor feelings about the largest digital currency. Currently, due to various price movements, the index has dropped to 14, marking extreme fear in the market, a phase that has persisted since mid-January.

As illustrated in the chart, the sharp decrease in market confidence has become apparent.

Bitcoin Fear and Greed Index Bitcoin Fear and Greed Index. Source: Alternative.me

Recent events from Saturday included a market-wide crash resulting in over $2.5 billion worth of leveraged trades being wiped out, further contributing to the negative sentiment.

According to Warren Buffett, investors should act contrary to the market sentiment; when the market is fearful, it might be a good time to invest. Based on the current Fear and Greed Index, this could be the right moment to consider entering the market.

Robert Kiyosaki emphasized the difference between wealthy and poorer investors, suggesting that the affluent tend to buy when markets drop, while others sell out of fear.

“DIFFERENCE BETWEEN Rich People and Poor People:
When Walmart has a SALE poor people rush in and buy, buy, buy.
Yet when the Financial Asset Market has a sale…a.k.a…..CRASH…
the poor sell and run….while the rich rush in….and buy, buy, buy.”
— Robert Kiyosaki (@theRealKiyosaki) February 1, 2026

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• Bitcoin Drops Out of Top 10 Global Assets, Falls to 13th
• Raoul Pal Says Bitcoin (BTC) Isn’t Broken: US Liquidity Is the Real Culprit
• Blockstream’s Adam Back Addresses Epstein Links as DOJ Releases New Files

Investors must remain prudent during these fluctuations and reconsider their strategies as market conditions evolve.