$20K Bitcoin Drop In 2 Weeks Pushes Investors Into Extreme Fear

These are the lowest levels in more than a month for the index.

It’s almost hard to imagine that just a few weeks ago, bitcoin was riding above $95,000, and the public was speculating about a possible run to six-figure territory for the first time in 2026.

Not only did that rally fail to happen, but the bears woke up in the middle of the winter and started several consecutive legs that eventually crashed BTC to multi-month lows. With that, the whole feeling went down again.

Fear and Greed Go South

The popular Bitcoin Fear and Greed Index collects data from various sources, such as overall volatility, market momentum, BTC dominance, and social media comments, to determine current investor and public sentiment about the major digital asset. Price volatility and market momentum are responsible for 50% of the final result, which ranges from 0 (extreme fear) to 100 (extreme greed). This makes sense that the metric has dropped recently.

As the graph below will clearly show, extreme fear dominates the current phase of the market. It has been below 30 since January 22, when the BTC correction began. After Saturday’s market-wide crash, in which more than $2.5 billion of positions were liquidated, the index has reached 14 – its lowest level since mid-December.

If you missed the events that took place on Saturday, here is a quick recap. BTC found a base to reach $84,000 after Thursday’s crash, but then fell to $75,500, its lowest price since last April. This means that BTC has decreased by $20,000 since January 18, when it stood at $95,500. Altcoins followed suit yesterday with major declines, as many marked declines not seen in more than a year.

A Blessing in Disguise?

Before we decide that BTC is dead again, according to the Index of Fear and Greed, let’s take you back to the words of an endless investment by one of the greats, Warren Buffett, who said in the past that people should be selfish when others are afraid, and vice versa.

If he is to be believed, and history is on his side this time, now would be the time to get greedy and get in on the plan, right? Past times when BTC (or other assets) have experienced swings in investor sentiment have resulted in almost immediate reversals.

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Robert Kiyosaki also weighed in on this topic, pointing out the difference between the rich and the poor. He believes that the first group goes on a buying spree when financial markets are “sold” (that is, crashes), while the second often sells and runs.

DIFFERENCE BETWEEN RICH PEOPLE AND POOR PEOPLE:

When Walmart has a SALE poor people rush to buy, buy, buy.

But when the Financial Asset Market has an auction….aka…..CRASH…
the poor sell and run…. while the rich rush to … and buy, buy, buy.

Gold, silver, and Bitcoin…

– Robert Kiyosaki (@theRealKiyosaki) February 1, 2026