On Tuesday, after Bitcoin briefly fell below $106,000 for the first time in over three weeks, the sentiment in the crypto market plummeted significantly.
The Crypto Fear and Greed Index dropped by half on Tuesday from the previous day, falling to a score of 21 out of 100, indicating that the crypto market is in a state of "extreme fear."
According to CoinGecko data, Bitcoin fell to a 24-hour low of $105,540 on Monday, sliding from an intraday peak of over $109,000. It is currently down 2% on the day, recovering to above $106,500.
The score of the crypto sentiment tracking index on Tuesday is the lowest level in nearly seven months, having previously dropped to 18 out of 100 on April 9, when the broader stock and crypto markets fell due to comprehensive global tariffs enacted that day by U.S. President Donald Trump.
The Crypto Fear and Greed Index last fell to "extreme fear" levels on October 22, scoring 25 out of 100 after Bitcoin dropped from above $110,000 to below $108,000.
Since the market crash on October 9-10, the index has been oscillating between "extreme fear" and "neutral," when BTC rapidly cooled from a peak of over $126,000 on October 6.
The last time the index was above a "neutral" score was before the crash in early October, reaching a one-month high of 74 on October 5, indicating "greed."
Analysts attribute the current decline in BTC to reduced institutional demand and blockchain activity, as well as concerns over the Federal Reserve's increasingly hawkish stance.
The Federal Reserve conducted its second interest rate cut of the year on Wednesday but hinted that there may not be another cut until 2025, leading to a decline in the crypto market as investors had hoped for further cuts.
Last week, Bitcoin-related exchange-traded funds saw nearly $800 million in net outflows, with institutional buying dropping below the daily mining supply for the first time in seven months.
Crypto bull market supporters are hoping for a so-called "Moonvenber," as historically, BTC has averaged over a 42% increase in November, which is typically its best growth month.
Related: "Not Good" Price Signals: Bitcoin ETF Demand Begins to Lag Behind Newly Mined BTC Supply
Original: “As Bitcoin (BTC) Drops Below $106K, Crypto Sentiment Plummets to ‘Extreme Fear’”
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