According to The Kobeissi Letter, there was a significant swing in crypto market sentiment, suggesting a potential retail trap. The Crypto Fear & Greed index moved from around 20, indicating extreme fear, to approximately 55, approaching greed, following the Reserve announcement. However, it has since dropped back to around 24, reflecting renewed fear levels. This volatility may impact trading strategies as market sentiment remains unstable (source: The Kobeissi Letter).

According to Michaël van de Poppe, the Crypto Fear & Greed Index has dropped to 10, a level last seen during the $LUNA collapse. After that event, Bitcoin experienced a 500% rally, indicating that such negative sentiment levels could present significant buying opportunities for traders. Citing historical data, this ultra-negative sentiment might be favorable for those considering long positions.

According to André Dragosch, the Crypto Fear & Greed Index has signaled 'Extreme Fear' this morning, a condition last observed in September 2024. Historical data suggests that such extremes often present alpha-generating opportunities for traders as market sentiment can lead to price fluctuations. Traders should consider this signal as a cue to evaluate potential entry points, as extreme fear can precede market rebounds. Source: André Dragosch (@Andre_Dragosch).