Bitcoin (BTC) fell by about 22% final week. The value reached round $60,013 however has recovered to $71,240 as we speak, February 6, 2026. This excessive volatility, characterised by a pointy drop final time, brought about excessive panic amongst buyers.
Bitcoin is presently buying and selling 47% under its all-time excessive of $126,000, set in October 2025. This vital correction in digital and cryptocurrencies is impacting the worry and greed index (index of worry and greedin English).
This index fluctuates on a scale of 0 to 100, however as you possibly can see within the graph, it presently registers a worth of 9, which falls underneath “excessive worry.” That is the bottom degree noticed final yr and represents a degree of pessimism not seen since 2022. This was at a time when the market was combating the collapse of Terra (LUNA/UST), the bankruptcies of monetary establishments similar to Celsius and Voyager, the next chapter of the FTX trade, and aggressive stress from the Federal Reserve to boost rates of interest.
The indicator developed by the Different.me web site is Estimate the overall sentiment of the market by analyzing varied elements. The composition of the index consists of the next elements and their respective weights: Bitcoin Volatility (25%), Market Momentum and Quantity (25%), Analysis (15%), Social Media Posts (15%), Bitcoin Dominance (10%), and Google Developments Search Developments (10%).
Every of those elements has a selected weight within the closing calculation, with the goal of quantifying the prevailing sentiment out there and estimating whether or not buyers are performing primarily pushed by feelings similar to worry or greed.
In concept, because the index supplier itself explains on its web site, excessive ranges of worry mirror buyers worrying an excessive amount of and interesting in (typically irrational) panic promoting, however for others, this may very well be a horny shopping for alternative for individuals who are assured in Bitcoin's long-term potential.
However in actuality, this state of worry might be: lasts a number of weeks or months Costs received't reverse anytime quickly. Subsequently, very low indicators don’t assure future upside, and there’s nothing to forestall Bitcoin from persevering with its downward correction within the quick time period whereas uncertainty and insecurity proceed to dominate market habits.
Voice of the market: Panic and long-term perspective
The panic is clearly mirrored within the forecasts of a number of technical analysts. Nick Pucklin of Coin Bureau Signifies Bitcoin may head in direction of $55,700. Equally, technical strategist Katie Stockton not too long ago predicted a decisive break under $70,000, which is what occurred, wherein case the value may fall to $57,800 earlier than discovering vital assist.
alternatively, There are voices calling for calm. and emphasizes the robust foundations of the ecosystem. Rodrigo Duran, communications director at NotBank by Cryptomarket trade, commented that there isn’t any cause for buyers to panic. Based on Duran, such corrections are a pure a part of the market maturation course of, so long as the structural fundamentals similar to institutional adoption, regulatory growth, and crypto infrastructure growth are strong.
Matt Hogan, chief funding officer at Bitwise, asserts that crypto winter will begin in January 2025. In his view, Winter is probably going nearer to the tip of this bearish cycle than the start, which suggests the market could also be transferring nearer to stabilizing after clearing the excesses.
Though the present sentiment is panic-like, Bitcoin has overcome extreme corrections up to now due to rising adoption and underlying fundamentals. On the whole, vital doubts stay concerning the path of costs within the close to future, leaving the opportunity of stabilization, rebound (what is going on now), or additional correction.
