The dramatic plunge in Bitcoin’s (BTC) value left the crypto community grappling with peak levels of fear, uncertainty, and doubt (FUD) as the cryptocurrency spiraled down to $78,000. Despite the steep fall and the ensuing pessimism, the leading digital currency predictably bounced back, currently trading around the $85,000 mark.
Social media discussions linked to Bitcoin suggest that a value of $70,000 per coin is a reliable indicator of FUD, while $100,000 per coin signals fear of missing out (FOMO). This observation was shared by the distinguished on-chain analysis team, Santiment, on March 15, 2025.
Bitcoin has been on a roller coaster ride in recent weeks. Prior to its upward surge, predictions on social media were largely leaning towards an expected range between $10,000 and $69,000. However, the tide turned, and just as everyone was expecting Bitcoin to breach the six-digit mark, the cryptocurrency entered a correction phase.
The data from recent weeks suggests that in times of extreme market volatility and uncertainty, contrarian bets against popular sentiment turned out to be the most astute moves. The last two points of euphoria, February 20-21 and March 2, emerged as especially opportune moments to sell Bitcoin. Conversely, the maximum pain points on February 27-28 and March 10 were ideal entry points for Bitcoin long positions, as per data provided by Santiment.
The past week, however, has been particularly brutal for Bitcoin bulls. On March 11, Bitcoin’s value nosedived below $77,000, effectively wiping out all gains from November, December, January, and February.
The gloom in the market was mirrored in the performance of Bitcoin Spot ETFs in the United States. Over the past seven days, they registered a paltry inflow of liquidity just once, while the remaining six days witnessed a negative dynamic. This resulted in a staggering reduction of $1.3 billion in assets under management (AUM) — the largest outflow in the history of Spot Bitcoin ETFs. As of press time, their net AUM had plummeted to $95 billion, a sharp decline from its peak of over $115 billion.
In conclusion, while Bitcoin’s recent volatility has led to significant market uncertainty, careful analysis of historical data and trends can help navigate these tumultuous waters. It is crucial for investors to stay informed, make rational decisions, and resist the pull of FUD or FOMO, which can too often lead to ill-timed financial decisions.