Crypto Market Turns Cautious as Bitcoin Dips After Trump's Tariff Announcement
The Crypto Fear & Greed Index indicates heightened concern in the market as Bitcoin prices face significant drops following a new tariff from the US.
Crypto Market Sentiment Trends Low
The crypto industry’s mood has shifted significantly, reflecting the lowest sentiment in nearly six months following US President Donald Trump’s announcement of a 100% tariff on China.
The Crypto Fear & Greed Index, which tracks market emotion, recently plunged to a “Fear” level of 27. This marks a sharp decline of 37 points from the previous “Greed” score of 64.
This downturn occurred as Bitcoin (BTC) saw its price drop to $102,000 on the Binance perpetual futures market in response to the tariff news. The last recorded low for the Fear & Greed Index happened back on April 16, shortly after Bitcoin fell to $77,000 amid escalating trade concerns.
Despite Bitcoin’s recent surge to $125,100, there wasn’t a corresponding wave of excitement among investors. According to analyst Brian Quinlivan from Santiment, the social media reaction following this peak was muted, lacking the euphoria seen in previous highs.
In contrast, Andre Dragosch, the head of research at Bitwise, noted that the company’s sentiment index generated a significant contrarian buying signal at this low point in sentiment, suggesting potential for future investment opportunities.
For those wanting to delve deeper, the Crypto Fear & Greed Index can be checked at Alternative.me.
“The index reached an intraday low of -2.8 standard deviations — its lowest level since the ‘Yen Carry Trade Unwind’ in the summer of 2024,” said Dragosch.
