The Bitcoin Fear and Greed Index has plunged to an alarming level of 10, indicating extreme fear among investors, the lowest point since the infamous Terra Luna crash in 2022. This significant decrease has raised fresh anxiety in the market as experts weigh in on potential future price movements.
Market analyst Timothy Peterson recently took to social media platform X, cautioning investors to brace for possible further declines in Bitcoin“s value. He estimates a 50%-75% probability that the leading cryptocurrency could experience additional dips, particularly after a wave of liquidations pushed the price below the $95,000 threshold.
Peterson anticipates that Bitcoin may reach its nadir by December. His predictions are rooted in historical trends, particularly how Bitcoin has behaved during previous bear markets, particularly in November. This month has often been tough for the cryptocurrency, coinciding with the release of institutional Q3 earnings reports. If these reports signal economic downturns, institutions may pivot away from volatile assets like Bitcoin.
To illustrate his point, Peterson referenced the 2018 crypto winter, which severely impacted the market, and the 2014 collapse of MT Gox, the largest Bitcoin exchange at the time. Notably, signs of trouble at MT Gox became apparent as early as November 2013, well before its eventual fallout.
As the Bitcoin Fear and Greed Index continues to decline, market experts remain divided on the asset”s immediate future. Influenced by heightened volatility and reduced expectations for another Federal Reserve rate cut this December, the index reflects the growing caution among investors toward risky assets such as Bitcoin.
Despite Peterson”s cautious outlook, he believes there is a 75% chance that Bitcoin will maintain a price above $90,000. Another expert, Ted Pillows, has also suggested a potential bottom for Bitcoin in the range of $88,000 to $90,000. However, he warned that if Bitcoin fails to hold this support level, it might revisit its previous low of $76,000 seen in April 2025.
Conversely, some analysts, including Michael Van de Poppe, maintain an optimistic view, suggesting that a bullish reversal could occur soon. Additionally, Ki Young Ju, CEO of Cryptoquant, noted that as long as capital continues to flow into Bitcoin, a rebound is always possible. This optimism is bolstered by reports of Harvard University increasing its holdings in Bitcoin ETFs to $442.8 million, marking a 237% rise.
