Crypto Sentiment Shifts to ‘Fear’ as Bitcoin Drops Following Trump’s Tariff Announcement

Key Takeaways

• The Crypto Fear & Greed Index plummeted 37 points from 64 (“Greed”) to 27 (“Fear”) following Trump’s tariff announcement
• Bitcoin briefly dropped to $102,000 after the US President announced 100% tariffs on China
• Nearly $19.27 billion in long and short positions were liquidated across crypto markets within 24 hours
• Analysts suggest the market decline presents a strong contrarian buying opportunity
• Bitcoin’s recent all-time high of $125,100 failed to generate the same social media enthusiasm as previous peaks

Market Sentiment Plunges to Six-Month Low

Cryptocurrency market sentiment has reached its lowest point in almost six months following US President Donald Trump’s announcement of a 100% tariff on China. The Crypto Fear & Greed Index, a key indicator of overall market sentiment, registered a “Fear” reading of 27 in its Saturday update—a dramatic 37-point decline from Friday’s “Greed” level of 64.

The sentiment shift coincided with Bitcoin briefly touching $102,000 on the Binance perpetual futures pair after Trump unveiled sweeping tariff measures on Friday.

The Index had shown a “Greed” score of 71 when Bitcoin achieved new all-time highs earlier in the week. The last time the Fear & Greed Index registered such low levels was April 16, when Bitcoin had tumbled to $77,000 amid escalating trade tension concerns.

Massive Liquidations Sweep Crypto Markets

The volatility triggered significant market upheaval. According to CoinGlass data, approximately $19.27 billion worth of long and short positions were liquidated across cryptocurrency markets over a 24-hour period.

Analysts Identify Potential Buying Opportunity

Despite the bearish sentiment, some market analysts view the current conditions as potentially opportunistic. Andre Dragosch, Bitwise European head of research, indicated on Friday that the company’s intraday crypto asset Sentiment Index generated a “strong contrarian buying signal.”

“The index reached an intraday low of -2.8 standard deviations – its lowest level since the ‘Yen Carry Trade Unwind’ in the summer of 2024,” Dragosch noted in a social media post.

Historical Context and Market Patterns

Just days before the April downturn, on April 9, Trump had announced a 90-day pause on higher reciprocal tariffs, reverting them to a 10% baseline for most countries. Earlier this week, the Index was firmly in “Greed” territory following Bitcoin’s climb to new heights of $125,100 on Monday.

Muted Enthusiasm Despite New All-Time Highs

Interestingly, Bitcoin’s recent record-breaking performance failed to generate the same level of excitement as previous milestones. Santiment analyst Brian Quinlivan observed on Friday that Bitcoin’s latest all-time highs didn’t produce comparable social media enthusiasm.

“It was like a modest, run-of-the-mill reaction from the crypto audience,” Quinlivan explained during a Thursday interview. “Really wasn’t much of anything. It’s not nearly as euphoric as some of these previous ones.”

This subdued response to new price records may indicate a maturing market where investors are becoming less emotionally reactive to price movements, or potentially suggest underlying caution among market participants despite bullish price action.