Crypto Fear Index Nosedives: Is This the Market’s Rock Bottom or Just the Calm Before the Storm?

Crypto traders are white-knuckling their portfolios as the Fear & Greed Index tanks to yearly lows. The question on everyone's mind: panic sell or buy the dip?

Blood in the streets—or just weak hands folding?

While traditional investors clutch their pearls, seasoned crypto degens see opportunity. After all, when the Fear Index flatlines, it's usually right before someone makes a fortune. Just ask the guys who bought Bitcoin at $3k during the 2018 carnage.

Wall Street analysts predict 'systemic risk'—but let's be real, they've been wrong about crypto since the first pizza purchase. Meanwhile, decentralized exchanges report record accumulation by wallets marked 'smart money.'

One thing's certain: when the crypto market smells fear, sharks start circling. Whether this is the bottom or just the beginning depends on who you ask—and how much leverage they're running.

The cryptocurrency market is engulfed in a wave of fear as the fear and greed index has sharply declined to 14, indicating extreme fear. Bitcoin$95,262, the leading cryptocurrency, hovers at its daily low, and the situation is bleak for altcoins as Ethereum$3,190 retreats to the $3,000 threshold, even dropping below BitMine costs. However, hope is on the horizon for Thursday. What significant event is anticipated?

NVIDIA Earnings Report Illuminates Thursday

The downturn is largely attributed to the perceived overvaluation of U.S. stock markets. While the crypto market faces its own unique challenges, the combination of these with the October 10 crash pushed Bitcoin towards deeper lows. The $92,000 range remains critical for Bitcoin, and the approach toward this level is causing concern.

A silver lining emerges with the upcoming Nvidia earnings report, scheduled for release on Thursday, as per U.S. time zones, and at 00:20 according to Turkish time. This report is eagerly anticipated, with expectations that it may exceed forecasts and mitigate discussions of overvaluation in AI and tech companies.

Renowned brokerage and market research firm Evercore International Strategy & Investment is closely monitoring the situation. Their recent report suggests a buy recommendation for NVIDIA, maintaining an “Outperform” rating and a target price of $261. Experts expect the report to surpass expectations due to robust demand and improved GB200/GB300 supply.

The company perceives NVIDIA as still being undervalued at 30 times forward earnings and with a 0.55 PEG ratio. The growing demand for AI directly boosts capacity, and the expanding cloud CapEx and the larger-than-expected Blackwell/Rubin pipeline support further growth prospects.

Considerations for Cryptocurrency Stakeholders

Should everything proceed smoothly and Evercore ISI’s expectations prove accurate, a rally in cryptocurrencies may follow. Additionally, later on Thursday, Non-Farm Payroll data will be released. Due to government closure in October, September figures were delayed and considered less reliable.

The Non-Farm Payroll forecast is at 57,000, compared to a previous figure of 22,000. Unemployment rates are expected to remain steady at 4.3%, with average earnings stable at 3.7%. Even if delayed, the Non-Farm Payroll data is expected to confirm the Fed’s October interest rate decision, and underperformance could have positive implications for cryptocurrencies.