Global markets' increasing geopolitical risks and instability in the Middle East have triggered a sharp sell-off in cryptocurrencies. As Bitcoin's price retreated below the $60,000 mark last week, investor appetite hit rock bottom, and the Bitcoin Fear and Greed Index dropped to a "9" level, a rare occurrence seen only twice in market history.

Bitcoin, which reached a peak of $126,000 in August 2025, has been on a gradual downward trend for the past five months. Although some stabilization was observed on Sunday after sharp losses over the weekend, the prevailing sentiment in the market remains in the "Extreme Fear" zone.

Critical threshold in the index: Is history repeating itself?
The Fear and Risk Appetite Index, which gauges the pulse of the crypto market, falling into single digits indicates that investors are pulling out of the market entirely. The index, which ranges from 1 to 100, last reached this level during the 2018-2019 bear market and the collapse of the FTX exchange in 2022.

Historical data shows that periods following such a deep decline in the index typically involve a long accumulation phase lasting several months. In past cycles, these "bottom" levels signaled the end of the bear market and the preparatory phase for a new upward wave, with prices reaching new highs in subsequent years.