According to a NewsBTC report, the barometer of cryptocurrency sentiment—the Bitcoin Fear & Greed Index—plunged to 28 on September 27, 2025, marking its lowest level since March. This sharp decline reflects widespread investor panic, following Bitcoin's drop below the crucial $110,000 support level and triggering over $1 billion in massive liquidations within a single day. Bitcoin is currently trading at approximately $109,220.
Section I: Panic Spreads—The Market Shock Behind the Index Plunge
The Fear & Greed Index (Index) is a vital metric that measures investor sentiment in the crypto market, ranging from 0 (Extreme Fear) to 100 (Extreme Greed). A reading of 28 on September 27 signifies the market has entered the deep waters of the "Fear" zone, just a step away from "Extreme Fear."
This sharp deterioration in sentiment wasn't without warning. As the Bitcoin price broke below the psychological mark of $110,000, a significant number of leveraged long positions, previously opened at higher prices, were forcefully closed. This resulted in total liquidations exceeding $1 billion. The long squeeze in the futures market intensified the selling pressure, leading more investors to panic-sell their spot holdings out of fear of further losses, creating a vicious cycle. This large-scale selling and liquidation event has pushed market confidence to its lowest point in nearly six months.
Section II: The Contrarian Indicator's Clue—Will History Repeat Itself?
Although the current figure is alarming, for seasoned crypto investors, extreme lows on the Fear & Greed Index are often viewed as a significant contrarian indicator.
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Extreme Fear ≠ Long-Term Bear Market: The core philosophy of the Index is that when the market is universally "greedy," it often signals a potential price top. Conversely, when the market is steeped in "Extreme Fear," it suggests selling pressure may be nearing exhaustion and presents a signal for smart money to begin accumulating at low prices.
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The Post-March Rebound: This reading of 28 is the lowest since March. Looking back historically, such low points are typically followed by a period of market consolidation or capitulation, subsequently leading to potential rebound opportunities. Adopting a contrarian perspective, the market's fear is the very fuel needed for a future upward movement.
The famous quote by Warren Buffett—"Be fearful when others are greedy, and greedy when others are fearful"—is exceptionally relevant in the current cryptocurrency market. When the masses are paralyzed by fear due to losses and liquidations, it is precisely the time to calmly assess whether a counter-trend strategy should be adopted.
Section III: Current Analysis—Factors to Consider Before Buying the Dip
While the sentiment indicator points to a potential rebound, investors must remain cautious and consider the following key factors before making a decision:
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Exhaustion of Liquidation Fuel: Despite the huge liquidation volume, it also means a large number of leveraged positions have been wiped out. The market needs to observe whether new negative news will trigger a second wave of liquidations. Once the long liquidation fuel is depleted, the market will find it easier to stabilize.
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Macroeconomic Impact: Bitcoin's trajectory is increasingly influenced by the global macro environment, such as the Federal Reserve's interest rate policy and geopolitical risks. Investors need to consider whether these external factors pose sustained pressure on risk assets.
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The $110,000 Threshold: Whether Bitcoin can firmly reclaim the $110,000 level will be the critical signal to confirm a short-term trend reversal. If the price continues to hover below this point, the market bottoming process may take longer.
In conclusion, the Bitcoin Fear & Greed Index plunging to 28 has indeed sounded the market panic alarm. However, for investors equipped with a contrarian mindset, this could very well be a golden opportunity to "be greedy when others are fearful." At the current price level of $109,220, the choice to either succumb to panic or to leverage historical lessons, analyze calmly, and seek out entry points will distinguish the average investor from the successful one.
