Matrixport: Extreme Crypto Fear Indicates Potential Turning Point Ahead

Matrixport's proprietary Greed and Fear Index indicates that Bitcoin sentiment is at a multi-year low, suggesting that the market could be nearing a turning point. Despite short-term uncertainty, the firm's analysis shows the index has fallen below zero on its 21-day average, a level previously close to price floors. However, prices could still drop before any recovery. The firm warns traders to be vigilant and prepare for conditions that typically precede a significant rebound. In the last week, Bitcoin investment products saw $380 million in outflows. Meanwhile, Bitcoin's value is down nearly 3% on the week and over 40% in the last six months. Other analysts have also noticed a mood of trepidation in the market, with shrinking open interest across exchanges indicating that investors are actively reducing exposure.