The Crypto Fear and Greed Index Is Flashing Red. This Is the Only Cryptocurrency I'm Buying Right Now.

Now that Bitcoin (CRYPTO: BTC) has dropped below $60,000, it's perhaps no surprise that the Crypto Fear and Greed Index is flashing red. The current reading is 15 out of 100, a clear indication of "extreme fear" in the marketplace.

But as legendary investor Warren Buffett once advised, "Be fearful when others are greedy, and be greedy when others are fearful." Of course, Buffett wasn't talking about crypto (and he has always advised against buying Bitcoin), but that same type of mindset can definitely be applied to the crypto market. And that's why I'm buying Bitcoin right now.

A contrarian signal

If others are fearful, maybe it's time to be greedy when it comes to Bitcoin. In other words, it's time to ignore investor sentiment, take all the emotion out of the investment decision, and focus on intrinsic value.

Image source: Getty Images.

And that's where Bitcoin really shines. If there's one cryptocurrency that has been embraced by both retail and institutional investors, it's Bitcoin. While it's fair to ask whether or not Bitcoin is really "digital gold," there's no longer any doubt that Bitcoin is an asset worthy of inclusion in just about any portfolio.

For more than a decade, Bitcoin has been one of the top-performing assets in the world. In seven of the past 14 years, it has delivered triple-digit returns to investors. While Bitcoin is highly cyclical, and usually turns in a stinker of a year every four years, it has always rebounded. That's what has made Bitcoin a favorite of investors: It is highly resilient.

In fact, after every major downturn, Bitcoin has always reached a new all-time high. Take the last market downturn in 2022. Yes, Bitcoin lost 64% of its value in a single year, and fell as low as $16,000. But it turned in triple-digit returns in 2023 and 2024, eventually soaring to a new all-time high of $126,000 in October 2025.

That's what leads me to think that the Crypto Fear and Greed Index might be a contrarian indicator. If the reading is very low and there is significant fear in the market, then that is the time to buy. If the reading is very high and there is significant greed in the market, then that is the time to sell.

When does Bitcoin recover?

Most likely, Bitcoin still has further to fall. Unfortunately, there is likely to be one final, spectacular implosion in the crypto market that will finally mark the bottom for Bitcoin.

In 2022, this event was the implosion of the FTX cryptocurrency exchange. In 2026, this event is likely to be the implosion of a high-profile Bitcoin treasury company. The one that everyone is worried about right now is Strategy, which is currently under extreme duress.

Obviously, with crypto, there are no guarantees. But if there's one cryptocurrency that's going to lead the way out of the current crypto bear market, it's Bitcoin.

Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.