Bitcoin Faces Potential Decline as Fear and Greed Index Plummets

The Bitcoin Fear and Greed Index has plunged to an alarming level of 10, marking its lowest point since the Terra Luna incident in 2022. This has sparked heightened investor anxiety about the cryptocurrency's future. Adding to the uncertainty, market analyst Timothy Peterson predicts that Bitcoin may experience further price declines, advising investors to brace for possible downturns.

Expert Forecasts December Low for Bitcoin

In light of the recent drop in the Fear and Greed Index, Timothy Peterson has projected a potential bottom for Bitcoin by December. He estimates a 50%-75% probability of further declines, citing past market trends, especially during November when Q3 earnings reports are released. Historical events like the 2018 crypto winter and the MT Gox collapse support his analysis, suggesting that Bitcoin could stabilize after December.

Divergent Views Among Experts

While Peterson foresees a decline, experts remain divided on Bitcoin's trajectory. Despite the Fear and Greed Index hitting new lows, some analysts, such as Ted Pillows, predict a bottom between $88,000 and $90,000. Should Bitcoin fail to hold this range, it might revisit its April 2025 low of $76,000. In contrast, other analysts, including Michael Van de Poppe, anticipate a potential bullish reversal. Cryptoquant CEO Ki Young Ju also expressed optimism, highlighting ongoing capital inflows, including a significant investment by Harvard University in Bitcoin ETFs, which increased holdings by 237% to $442.8 million.