Extreme Fear Grips Crypto Market as Bitcoin Hits 3-Week Low
After Bitcoin briefly dropped below $106,000 for the first time in over three weeks, sentiment in the cryptocurrency market plummeted. The Crypto Fear & Greed Index dropped to 21 out of 100, indicating “Extreme Fear” in the cryptocurrency market. Tuesday’s score on the cryptocurrency sentiment tracking index is the lowest it has been in almost seven months. On April 9, it had most recently dropped to 18 out of 100. The extensive worldwide tariffs that US President Donald Trump had implemented that day had caused a drop in the world’s stock and cryptocurrency markets.
Crypto Sentiment Plunges After Bitcoin’s Sharp Decline
With a score of 25 out of 100, the Crypto Fear & Greed Index last entered the “Extreme Fear” zone on October 22. The collapse of Bitcoin from above $110,000 to less than $108,000 was followed by this one. The index has been oscillating between “Neutral” and “Extreme Fear” since the October 9–10 market crisis. Bitcoin rapidly declined from its peak of almost $126,000 on October 6. Before the early-October fall, the index was last above the “Neutral” line. A monthly high of 74 was obtained on October 5, indicating “Greed.”
Crypto Bulls Eye ‘Moonvember’ Despite Fed-Induced Bitcoin Drop
Concerns about a more hawkish Federal Reserve and a decline in institutional demand and blockchain activity have been blamed by analysts for Bitcoin‘s recent decline. On Wednesday, the Fed lowered interest rates for the second time this year, but it hinted that it would not do so again in 2025. As investors hoped for more rate cuts, this led to a decline in cryptocurrency markets. Crypto bulls, however, continue to hold out hope for a purported “Moonvember.” November has historically been the biggest month for Bitcoin growth, with an average rise of almost 42%.
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