Bitwise: The market is experiencing fear, making it the perfect time to accumulate Bitcoin

On October 17th, the recent weak performance of Bitcoin appears to have dampened market enthusiasm, and Google search interest has dropped to a multi-month low. The latest market sentiment index reflects the typical characteristics of a bear market phase, with cautious sentiment prevailing in the entire crypto market. The Crypto Fear and Greed Index has dropped to 24, which is in the "Fear" level and the lowest point in the past year, a sharp decline from 71 last week. This decline is similar to the sentiment when Bitcoin briefly dropped below $74,000 in April this year, echoing the market fatigue cycles of 2018 and 2022. Although sentiment has dropped sharply, Bitwise analysts believe that the current situation is more suitable for "buying the dip" rather than withdrawing. The company's research director André Dragosch, senior researcher Max Shannon, and research analyst Ayush Tripathi stated that the recent correction is mainly driven by external factors, including a renewed escalation of U.S.-China trade tensions, triggering a general risk aversion sentiment in the global market. Dragosch said, "This forced liquidation event has 'significantly depleted selling pressure,' creating a reverse buy window similar to what occurred after the unwinding of the yen carry trade in August 2024. Our internal crypto asset sentiment index has dropped to the lowest level since that period. Historically, such extreme sentiment often indicates a good entry opportunity before the seasonal strength in the fourth quarter."