Bitcoin Wipes All May Gains as Crypto Fear & Greed Index Plunges 24 Points Toward Extreme Fear

Bitcoin has fully retraced its May price gains, dragging broader crypto market sentiment sharply lower in the process. The Fear & Greed Index has dropped 24 points from last week's Neutral reading of 49, pushing the market back toward the Extreme Fear zone — a level historically associated with capitulation and heightened selling pressure.

The speed of the sentiment reversal is notable. Moving 24 points in a single week signals that the optimism that briefly returned to the market in early May was fragile and not backed by sustained buying conviction. When the index approaches Extreme Fear, retail participants tend to exit positions while longer-term holders and institutional desks watch for potential accumulation entry points.

For now, the data paints a cautious picture: May's recovery has been fully erased on both a price and sentiment basis, and the market will need a meaningful…