BTC Fear hits yearly lows, opening a unique buying phase

Takeaways from the conference:

• The Bitwise analyst believes that there is a good chance that any dips could be a great opportunity to buy.

• Even as exchange deposits increase, smaller BTC holders continue to accumulate.

Bitcoin’s recent weakness (BTCThe price of appears to be dampening enthusiasm. Google searches for the asset have fallen to an all-time low. These latest readings were similar to those seen during periods of bearishness, where caution is the dominant crypto sentiment. 

Cointelegraph reported The Crypto Fear and Greed Index is now at a “Fear” The level is 24, the lowest it has been in over a year. It’s also down from last week. “Greed” The reading age is 71. The decline is similar to the sentiment seen in April when Bitcoin briefly dropped below $74,000. It also parallels past cycles of market fatigue from 2018 and 2022.

Bitcoin can be a great opportunity for panic: Bitwise

Bitwise’s analysts are convinced that despite the dramatic drop in sentiment, the current situation favors growth, and not retreat. Director and head of research André Dragosch, senior research associate Max Shannon, and research analyst Ayush Tripathi said that the recent correction was driven largely by external factors, including renewed US–China trade tensions that triggered broad-based risk aversion across global markets.

Bitwise’s weekly crypto market compass report The correction has been amplified due to a wave of record liquidations in the futures market, as Bitcoin’s perpetual open interest plunged by almost $11 billion. “the strongest decline on record.”

Dragosch stated that the forced liquidation has occurred now “meaningfully exhausted selling pressure,” Set the stage for an anti-consumer buying window. Yen carry trade unwind In August 2024,

“Our in-house Cryptoasset Sentiment Index has dropped to its lowest level since that period,” “The analyst stated, adding” “Historically, such extremes have marked favorable entry points ahead of seasonal strength in Q4.”

Related: Bitcoin retail interest is in ‘bear market’ as crypto sentiment flips to fear

Bitcoins are being held by smaller holders amid pressure from miners

The data from Onchain supports this. Glassnode reported The accumulation of smaller Bitcoin owners, between 1 BTC and 1000 BTC in the past few days has offset the reduced purchasing by larger holders. The pattern suggests that retail investors and middle-tiers are regaining confidence, despite the continued volatility in the market.

Other indicators, however, paint a much more complicated picture. CryptoQuant data showed The largest since July is the fact that, since Thursday last week, miner have transferred 51,000 BTC worth over $5 billion to exchanges. This activity is often preceded by sell-side pressure as miners move their holdings into exchanges in order to hedge or liquidate positions.

As data changes, it is possible that long-term investors will also exit their positions. indicated The largest monthly sale since January 2025 is 265,715 BTC.

Bitcoins’ stability at around $110,000 suggests that ETFs or institutions are absorbing any excess supply. These opposing flows indicate that the market has moved from capitulation to reaccumulation. Bitwise analysts see this as the basis for a strong Q4. 

Related: Bitcoin Coinbase Premium keeps BTC above $110K: Will this level hold?

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.