The greed and fear index has dropped to 9 — it's just bottoming out. The last time this happened was during the FTX crash, and now we're back there again. A week ago it was at 16, a month ago at 42, so the decline has been just steep.

Today, Bitcoin touched $60K, then bounced back to $65K, but the current price is already higher — $71.5K. Despite the recovery, the greed and fear index remains at extreme levels, showing how panicked the market still is. People quickly shifted from caution to full protection.

The index is based on volatility, trading volumes, social signals, Bitcoin dominance, and even Google searches about BTC. When all of these drop simultaneously — it's a sign of systemic stress. Although historically extreme fear often coincided with local bottoms, it's not a guarantee. The greed and fear index is better seen as a market thermometer rather than a buy signal.

In such conditions, traders with leverage and short-term traders exit the game. Some buyers are already entering on the decline, but the broader market is clearly still in "sell first, ask questions later" mode. The market has returned to a fear level usually only seen during serious shocks.