Repeated cycles of fear are a sign of strength, not weakness.
Amid Bitcoin's high volatility and repeated cycles of fear and greed ($BTC), Bitcoin's long-term trajectory appears to remain unchanged, based on its 50-week simple moving average (SMA). Each major decline over the past year has been followed by temporary dips, followed by even stronger rebounds. This scenario is consistent with the Bitcoin adage: “Fear is temporary, but profit is forever.” CryptoRus, a prominent cryptocurrency news platform on social media, discussed the current situation on its X account.
Back in April 2025, the US president's announcement of global tariffs triggered a global sell-off that rocked traditional and cryptocurrency markets. Then, in June, fears of a wider conflict over rising tensions between Israel and Iran sparked a new wave of uncertainty. Now, markets are reacting to fears of China potentially imposing a 100% tariff, sparking a new wave of anxiety worldwide and wreaking havoc not only in traditional finance (TradFi) but also in decentralized finance (DeFi).
While such recurring fears are alarming to crypto traders and investors, the pattern identified by CryptoRus is clear: each fear-driven decline resulted in Bitcoin ($BTC) falling to its 50-week SMA, after which it recovered with even greater force. The chart clearly shows that previous fear and greed readings near support levels marked key reversal zones, not complete failures.
Panic caused by fear is passing, and trust in institutions is growing.
Market analysts believe that this volatility isn't actually destructive, but rather somehow purifying. Short-lived panics or market declines shed weak positions and normalize overheated conditions. Meanwhile, the “whales” continue to strengthen their portfolios. Institutional adoption, such as the consistent expansion of Strategy's portfolio, is also accelerating.
Spot Bitcoin ETFs provide access to new liquidity, while global regulatory clarity expands investor options and provides a positive outlook. While the Fear and Uncertainty Index (FUI) attracts attention in the crypto market, remember that it fades quickly. Far more important are growing adoption, expanding liquidity, and an improving market outlook. Therefore, it can be said that “fear is temporary, but reward is permanent.”
Source: cryptonews.net