How scared is the crypto world now? Let's see what history says.

Current Situation: Panic Index Explodes

BTC, ETH, and SOL have dropped quite sharply in recent months, and the Fear & Greed Index has returned to the level of “Extreme Fear”—similar to the vibe during the COVID crash and the FTX bankruptcy. Just look at the candlestick chart to understand why so many people want to cut their losses.

But this thing has been seen in history

To be honest, this kind of scenario repeats itself in the cryptocurrency circle. Looking closely at the data:

• Since 2017, BTC has experienced more than 10 pullbacks of over 25%.
• Among them, 6 declines exceeded 50%, and 3 were close to 75%.
• Every time it ultimately reaches a new high

Interestingly, extreme panic often indicates a rebound in the coming months - we had one in April this year. It looks like a crash now, but when placed on a cycle chart, it is actually just a severe but normal market correction.

What will happen next?

The cycle in the cryptocurrency world usually goes like this: sharp rise → sharp drop → long period of doubt → new high. We are currently stuck in the “sharp drop” phase, and the next step is likely that investors will start to go silent out of boredom or despair—this phase may last at least 30 days before we see any obvious signs of recovery.

But the fundamentals are still advancing: RWA (Tokenized Real Assets) has grown by 2.3% in the past 30 days, now reaching $35.7 billion. This means the market will eventually recognize the value of these networks.

Where is the real risk?

In the short term, the biggest fear is not that cryptocurrency prices will continue to fall, but that the traditional financial system will face problems—such as a stock market crash, soaring interest rates, or failed tariff policies—in which case risk assets, including cryptocurrencies, would be collectively sold off.

But even if a bear market really comes, history tells us: those who dare to buy the dip or dollar-cost average high-certainty assets during extremely pessimistic periods ultimately make a profit. BTC, ETH, SOL and these things won't run away; buying them now means that when the market turns, it will be a moment of profit.