Bitwise: The market is in a state of panic, making it the perfect time to accumulate Bitcoin

ChainCatcher news, the recent weak performance of Bitcoin seems to have dampened market enthusiasm, with Google search interest falling to a multi-month low. The latest market sentiment index reflects characteristics typical of a bear market phase, with cautious sentiment dominating the entire crypto market. The Crypto Fear and Greed Index has dropped to 24, indicating "fear" levels, marking the lowest point in the past year, a significant decline from last week's 71.

This drop in sentiment is similar to the mood when Bitcoin briefly fell below $74,000 in April this year and resonates with the market fatigue cycles of 2018 and 2022. Despite the sharp decline in sentiment, Bitwise analysts believe the current situation is more suitable for "buying the dip" rather than retreating. The company's research director André Dragosch, senior researcher Max Shannon, and research analyst Ayush Tripathi stated that the recent adjustment is primarily driven by external factors, including the renewed escalation of trade tensions between China and the U.S., triggering a general risk-averse sentiment in global markets.

Dragosch stated, "This forced liquidation event has significantly alleviated selling pressure, creating a reverse buying window similar to what occurred after the yen carry trade liquidation in August 2024. Our internal crypto asset sentiment index has dropped to its lowest level since that period. Historically, such extreme sentiment often signals a good entry point before the seasonal strength of the fourth quarter."