Bitcoin Fear Index Tanks Below FTX Levels: Rebound Coming or More Fear?

BTC is testing its 200-day moving average (DMA) and the Relative Strength Index (RSI) is oversold. Analysts say this setup could be a bottom as extreme fear has always preceded bullish reversals.

Panic Selling Accelerates Market Down

Bitcoin’s price drop has triggered liquidations and exchange inflows:

• 24-hour liquidations: $460 million, $390.88 million from longs.

• BTC futures open interest: Down 6.3% to $53.6 billion.

• Daily trading volume: Down 17% to $68 billion.

• Bitcoin exchange deposits: $1.3 billion, selling pressure.

BTC is flowing into exchanges as traders are selling out positions due to further price drop.

Robert Kiyosaki Sees BTC as a Buying Opportunity

Veteran investor and author Robert Kiyosaki sees the drop as a buying opportunity. He is still confident in BTC’s long term value as he says the global monetary system is flawed and Bitcoin is a safe-haven asset.

• Kiyosaki on BTC: “Money with integrity.”

• US Financial System: $36 trillion debt and unsustainable social programs.

• Investment strategy: Buying Bitcoin, gold and silver as a hedge against fiat currency.

🚨 Bitcoin Fear index DEEPENS below FTX collapse levels (10 vs 11)
Max pain capitulation threshold?
Speculative alts ($CARV +60%, $KAITO +36%) pump as $BTC whales hibernate – bears trapped?

— Neuscaster (@neuscaster) February 27, 2025

“When Bitcoin crashes, I buy more,” Kiyosaki said, reiterating his confidence in BTC against traditional financial failures.

Trade War Escalation Fuels Bitcoin’s Decline

Bitcoin is falling as macro concerns rise. After former President Donald Trump announced a 25% tariff on the European Union, the S&P 500 lost $500 billion and everyone got risk off.

• BTC price fell below $83,000 for the first time in 15 weeks.

• Down 25% from its January 20th peak.

• Investor sentiment now more fearful than during FTX’s collapse.

Despite the noise, experts are still bullish on Bitcoin’s long term. CryptoQuant CEO Ki Young Ju says strong fundamentals and institutional demand will drive the next rally.