Crypto market sentiment plummeted on Tuesday after Bitcoin briefly fell below $106,000 for the primary time in over three weeks.
The Crypto Fear & Greed Index fell by half on Tuesday in comparison with the day before today to a reading of 21 out of 100, indicating “extreme fear” within the crypto market.
Bitcoin (BTC) fell to a 24-hour low of $105,540 on Monday, slipping from an intraday high of over $109,000. According to CoinGecko, the worth is currently down 2% on the day and is recovering to over $106,500.
Tuesday's crypto sentiment tracking index reading is the bottom in nearly seven months, falling to 18 out of 100 on April 9 as broader stock and crypto markets fell in response to U.S. President Donald Trump's sweeping global tariffs that took effect that day.
The Crypto Fear & Greed Index fell from 42 to 21 points in a single day on Tuesday. Source: Alternative.me
“Extreme fear” if Bitcoin slides
The Crypto Fear & Greed Index last fell to the “Extreme Fear” level on October 22, reaching a worth of 25 out of 100, after Bitcoin slipped from over $110,000 to below $108,000.
Following the October 9-10 market crash, when Bitcoin cooled quickly from its peak of over $126,000 on October 6, the index fluctuated between Extreme Fear and Neutral.
Before the crash in early October, the index was last above neutral and reached a high of 74 last month on October 5, indicating “greed.”
Analysts attribute Bitcoin's current decline to lower institutional demand and blockchain activity, in addition to concerns about an increasingly restrictive Federal Reserve.
The Fed cut rates of interest for the second time this 12 months on Wednesday but indicated it might not accomplish that again in 2025, sending crypto markets lower as investors had hoped for further rate cuts.
Last week, Bitcoin-linked exchange-traded funds saw net outflows of nearly $800 million, with institutional buying falling below each day funded supply for the primary time in seven months.
Crypto bulls are hoping for a so-called “moonvenber” as Bitcoin has historically gained over 42% on average in November, typically its best month of growth.
