The fear index for Bitcoin has dropped to its lowest point of the year, signaling a bleak market mood. Bitwise advises buying in steps rather than dumping holdings, a message aimed at everyday savers and fund managers who prefer to enter the market in small batches. The firm believes heavy selling has largely run its course and urges calm, rule‑based buying even as prices swing.
The Crypto Fear & Greed Index runs from 0 (total fear) to 100 (total greed), and it has slipped into the low 20s and, on some days, below 10. Any score under 25 is labeled “extreme fear,” a zone that Bitwise notes often aligns with markets that have fallen too far, giving long‑term buyers a chance.
While the mood soured, Bitcoin’s price slid under $110 000, wiping out billions in leveraged bets and shoving the index deep into the red zone. Bitwise adds that small traders panic, yet big firms keep joining.
In Q3 2025, 48 first time companies put Bitcoin on their books, lifting the club of firms that hold more than one million coins to 172. Together they control coins worth about $117 billion, a 28 % jump from the prior quarter.
Bitwise also runs a regulated ETF, BITB, which held 40 943.3 BTC on July 19, 2025 and charges 0.20 %. The firm posts wallet proof so clients see the coins back the shares.
Implications of the Bitcoin fear index
Bitwise repeats that the setup rewards steady buying, not rushed exits. Matt Hougan, the chief investment officer, forecasts Bitcoin will return close to 30 % a year for the next ten years and calls it a diversifier that does not move in lockstep with stocks or bonds.
The firm lists dangers: companies like MicroStrategy or Metaplanet borrow heavily to buy Bitcoin, and falling prices can magnify pain via debt and share issuance. Metaplanet shares fell 54 % even though Bitcoin itself rose 2 %. Large ownership does not erase the risk of bad timing or too much leverage.
Bitwise stays upbeat and says Bitcoin may trade above $200 000 in 2025. For both fund managers and individual savers, the playbook is to buy small, regular amounts and to rebalance on schedule while the fear gauge stays low.
