After consecutive bloodbaths, the cryptocurrency market is in a panic. The last time there was "such panic," Bitcoin fell another 25%

The cryptocurrency market sentiment indicator has fallen to its lowest point of the year, raising concerns among investors about a new round of deep corrections. Despite the spread of panic, several analysts believe that the current extreme pessimism may indicate that a local bottom is forming, advising investors to remain patient rather than panic sell. On November 13, the Fear and Greed Index in the crypto space plummeted to 15 points, marking the lowest level since February this year. This extreme fear reading has alerted the market: the last time the index fell below 20 points was on February 27, after which Bitcoin's price dropped by 25% to $75,000 within a month. The latest report from market sentiment analysis platform Santiment shows a sharp rise in negative discussions surrounding Bitcoin, Ethereum, and XRP, with sentiment levels far below normal. However, the agency views this extreme pessimism as a potential bullish signal, believing that the market is approaching a capitulation phase. Industry experts are urging investors to adopt the strategy of "buying when there is panic and selling when there is greed." Although this strategy has been effective in the long term, most retail investors continue to suffer losses due to excessive leverage or lack of patience. Panic Index Hits Yearly Low The Fear and Greed Index is calculated based on several factors, including price volatility, trading volume, social media trends, and Bitcoin's market dominance. A reading of 15 points represents an "extreme fear" state, reflecting the widespread pessimism within the cryptocurrency community. This is the first time since February that the index has fallen to such a low level. Historical data shows that after the index fell below 20 points on February 27, Bitcoin experienced a 25% decline in the following month. This precedent has raised concerns among market participants about a similar correction potentially occurring again. Since the large-scale liquidation event on October 11, market sentiment has failed to recover and has instead worsened. Key sentiment indicators show that investor confidence remains low. Negative Sentiment Dominates Market Narrative Santiment analyzed community discussions around Bitcoin, Ethereum, and XRP through the positive/negative sentiment ratio. A significant drop in this ratio indicates that negative discussions are dominating the market narrative. Currently, the sentiment levels for these three assets are far below normal. However, Santiment interprets this extreme negative sentiment as a potential bullish signal. The agency noted in its report: When the public turns negative on an asset, especially on the leading assets in the cryptocurrency market, it indicates that we are approaching a capitulation point. Once retail investors sell off, key holders will acquire the sold tokens and drive up the price. It is not a question of "if" this will happen, but "when" it will happen Analysts Suggest Staying Patient Several well-known market analysts agree with this view, arguing that panic selling is not the correct response. Analyst Joe Consorti stated that the sentiment in the Bitcoin market is as bad as during the correction period from February to April. As weak holders are being washed out, a local bottom is forming. Patience is a virtue. Kyle Reidhead from Milk Road takes a more cautious stance, believing that this negative sentiment could push Bitcoin down to the $90,000 range before a strong rebound occurs. Historical data shows that the strategy of "buying in times of panic and selling in times of greed" has worked well for Bitcoin investors over the years. However, most retail investors are still at a loss, either due to excessive leverage or a lack of patience to endure prolonged extreme panic sentiment