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Bitcoin Fear Index Signals Buying Opportunity Amid ETF Inflows

Bitcoin's Fear and Greed Index remains in the fear zone, presenting potential buying opportunities. Meanwhile, spot Bitcoin ETFs attract nearly $800 million in inflows, with BlackRock’s IBIT leading the charge.
Published on 2025-03-22

Bitcoin Fear and Greed Index Points to Caution

The Bitcoin Fear and Greed Index continues to hover in the fear zone, reflecting investor caution. Currently at 32, the index has fluctuated between 31 and 46 over the past week, dropping from neutral to fear. Historically, extreme fear levels (as seen on Feb. 27 and March 4) have often signaled buying opportunities for traders.

Bitcoin Price Movement

Bitcoin is trading at $84,380, down 2.9% since the Federal Reserve’s interest rate announcement. The cryptocurrency is moving within a defined range, reacting to the Fed’s decision to maintain current rates rather than cutting them as markets had anticipated.

Fed’s Interest Rate Decision Impact

During the FOMC meeting, Jerome Powell announced that interest rates will remain steady, contrary to expectations of potential cuts throughout 2025. This decision has influenced Bitcoin’s price movement, as investors weigh the implications for the broader financial landscape.

Spot Bitcoin ETFs See Significant Inflows

Spot Bitcoin ETFs have attracted nearly $800 million in inflows this week, with $744.3 million remaining after minor outflows. BlackRock’s IBIT has dominated, drawing in 6,342.47 BTC worth $535.6 million, further solidifying its leadership in the Bitcoin ETF space.

The combination of fear-driven market sentiment and strong ETF inflows highlights the complex dynamics shaping Bitcoin’s current trajectory.

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