Current declines within the Bitcoin Worry & Greed Index have pushed investor sentiment to its lowest level in a 12 months, with the index falling to 24—down sharply from final week’s ‘Greed’ studying of 71.
This shift comes as Bitcoin’s value hovers round $105,000 and retail curiosity, as tracked by Google searches, has cooled to multimonth lows.
Bitwise sees panic as a chance
Regardless of the drop in sentiment, Bitwise analysts argue that promoting stress has possible peaked and that present market situations could favor accumulation.
André Dragosch, Max Shannon, and Ayush Tripathi from Bitwise clarify that latest corrections have been largely pushed by exterior components, reminiscent of renewed US–China commerce tensions and a report wave of futures liquidations, which noticed perpetual futures open curiosity plunge by almost $11 billion.
Dragosch commented:
“Our in-house Cryptoasset Sentiment Index has dropped to its lowest stage since that interval. Traditionally, such extremes have marked favorable entry factors forward of seasonal energy in This autumn.”
Smaller holders accumulate as miners promote
Onchain knowledge reveals that smaller Bitcoin holders—wallets with 1 to 1,000 BTC—have elevated their accumulation in latest days, serving to offset decreased shopping for from bigger traders.
In the meantime, miner deposits to exchanges have surged, with roughly 51,000 BTC despatched since final Thursday, marking the biggest influx since July.
This inflow typically alerts potential sell-side stress as miners search liquidity or hedging alternatives.
Lengthy-term holders exit, however value holds regular
Lengthy-term holders have additionally offered important volumes, with over 265,000 BTC leaving their wallets prior to now 30 days—the biggest outflow since January 2025.
Nevertheless, Bitcoin’s ongoing stability close to $110,000 means that demand from institutional consumers or ETFs could also be absorbing extra provide.
This shift factors to a market in transition from capitulation to reaccumulation.
Market outlook stays cautiously optimistic
General, Bitwise analysts keep that the current setting of low sentiment and heightened volatility may supply a contrarian shopping for window, particularly as smaller holders and establishments seem poised to build up.