Crypto Fear & Greed Index plunges to 6-month Lows on Trump tariffs and Bitcoin crisis, triggering market panic and technical problems.
The confidence of investors in crypto has significantly decreased, and the Crypto Fear & Greed Index has fallen to its lowest point in 6 months.
The 64 in the Greed indicator dropped to 27 in a single day, which signifies the presence of a very high level of fear and unwillingness among traders.
This violent move concurred with the announcement of high tariffs on China by President Donald Trump, which led to volatility in the market.
Bitcoin also hit a huge blow when it briefly dropped to 102,000 on Binance perpetual futures.
This led to liquidations worth more than $ 1 billion as leveraged traders were thrown out of the market.
The sheer volatility caused technical problems on the majority of exchanges, including Binance and Coinbase, and customers complained of frozen order books, sluggish apps, and temporary lockouts at the busiest selling times.
A Crypto Trading Platform Stress Test.
The recent price shocks were an extreme stress test to the cryptocurrency ecosystem. Trading infrastructure in major exchanges was unable to cope with the volume and volatility of the news about the tariff and market panic.
This revealed persistent issues in the capability of the crypto market to handle vast price fluctuations without being interrupted.
Market Sentiment Drops to Deep Fear.
Source – alternative.me
A fall in the Crypto Fear & Greed Index to 27 is among the lowest sentiment levels recorded in the index since April 2025.
This kind of fear has been a preceding factor of market rebounds, with analysts indicating a high contrarian buying chance.
The intraday Crypto Asset Sentiment Index reached even less of -2.8 standard deviations, which means that the market is extremely anxious and preparing for a potential turnaround.
Source – X
The Bitcoin price tumult has seen surprisingly low social media response, indicating low retail investor response.
This dampened mood is seen by experts as an indication of a more stable price base building under the volatility, though the future is uncertain in macroeconomic terms.
Greater Market Effect and Economic Issue.
Wall Street, too, incurred significant losses, as the S&P 500 dropped 2.7 percent following Trump’s threat to raise tariffs, which caused fear of a rise in trade friction.
The markets dropped across the world, and increased export quotas on rare earth in China left supply shock concerns, including manufacturing and technology industries around the world.
The new 100 percent tariffs on China, which will start taking effect next month, come against the background of the allegations that Beijing is limiting the exports of rare earths vital to manufacturing in the U.S.
This political tussle has led to multi-market spill over and increased aversion to risk among investors, further straining the crypto market.
The post Crypto News Predictions: Crypto Fear & Greed Index Crashes to 6-Month Low appeared first on Live Bitcoin News.