Crypto Index: Bitcoin Falls to Extreme Levels, Analysts Saw Bitcoin Accumulation Opportunities
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The crypto market again showed weakness, with the price of Bitcoin falling through the US$107,000 area on Friday (17/10/2025).
This correction also triggered a decrease in investor interest in the world's largest crypto asset.
According to data Alternative.me, the Crypto Fear and Greed Index, an indicator that measures the level of confidence and concern of market participants, fell to the level of “Extreme Fear” at number 22, down sharply from the position of “Greed” at number 64 in the previous week.
This Level became one of the lowest in the last year, approaching the score of 18 recorded on April 9, 2025 when Bitcoin fell below US$74,000. The conditions illustrate a rapid shift from optimism to extreme caution.
Bitcoin Accumulation Opportunities
Although market sentiment appears to be deteriorating, analysts from Bitwise Asset Management assess that the current conditions actually open accumulation opportunities, not a signal to retreat.
In the Crypto Market Compass Report, The Bitwise research team led by André Dragosch explained that the latest correction is more due to external factors, such as increased trade tensions between the United States and China that triggered capital outflows from risky assets in global markets.
Bitwise also highlighted that price pressure was compounded by the largest wave of liquidation of futures positions in history. Bitcoin's open interest value plummeted by nearly$11 billion, in what was described as “the steepest drop ever.”
Dragosch explained that the massive liquidation action has “significantly drained selling pressure,” opening up opportunities for a phase of contrarian buying like the one that once occurred after the Yen market turmoil in August 2024.
"Our internal crypto sentiment index is now at its lowest point since that period,” Dragosch said. "Historically, extreme conditions like these have often been the ideal entry point before seasonal strengthening in the fourth quarter.”
On-chain Data supports this view. According to Glassnode, a small group of Bitcoin holders who hold between 1 and 1,000 BTC recorded increasing accumulations in recent days, masking the weakening buying interest from the whale group.
This pattern indicates renewed confidence from retail and medium-sized investors, although market volatility is still high.
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However, other indicators give more complex signals. According to CryptoQuant data, since last week miners have sent around 51,000 BTC equivalent to more than US$5.7 billion to crypto exchanges, the largest inflow since July. This activity is usually interpreted as an initial step to sell or protect positions, which can add pressure on the sell side.
In addition, the data also shows that long-term investors have shed around 265,715 BTC in the past 30 days, becoming the largest monthly outflow since January 2025.
Nevertheless, the price of Bitcoin which still stands around us$108,000 indicates a strong demand from institutional investors or ETFs that absorb the selling pressure. The combination of retail accumulation and miner's sell-off indicates the market is in a transition phase, from capitulation to reaccumulation, which Bitwise considers as the foundation for potential strengthening in the last quarter of 2025.
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