Bitcoin News: Bitcoin's 'Extreme Fear' Signal Could Indicate a Potential Price Rebound

Bitcoin's (BTC) price volatility continues as investor sentiment remains in the 'Extreme Fear' zone, a pattern that has historically preceded major price recoveries.Key Insights:The Fear and Greed Index, which measures investor sentiment on a scale from 0 (extreme fear) to 100 (extreme greed), has remained in the 'Extreme Fear' range for several days.A similar 'Extreme Fear' reading in September 2024 occurred when Bitcoin traded at $53,000, followed by a 200% price increase over three months.Vincent Liu, CIO at Kronos Research, suggests that Bitcoin’s current fear-driven low could present a buying opportunity if global trade tensions ease.Despite an initial surge following President Trump's announcement of a U.S. crypto strategic reserve, profit-taking and risk aversion in equity markets have limited further gains.Macroeconomic Factors Impacting Bitcoin:U.S. Trade Tariffs: The latest tariff announcements on Canada, Mexico, and China have added uncertainty to global markets, pressuring investor sentiment.White House Crypto Summit: Traders are awaiting more details on the U.S. strategic crypto reserve, which could provide greater clarity on the regulatory direction.Market Uncertainty: Bitcoin remains volatile, fluctuating between $83,000 and $95,000, as investors weigh macroeconomic risks and potential policy shifts.The prolonged 'Extreme Fear' reading suggests that Bitcoin could be approaching a price floor, but further developments from the White House Crypto Summit and global economic trends will likely influence short-term market movements, according to CoinDesk.