Crypto Market Mood Weakens With Fear Index At Lowest Level Since December
Crypto markets opened Friday in a darker temper because the Crypto Fear and Greed Index slid to 16, again in “Extreme Fear” territory and down from 26 a day earlier.
The gauge final printed 16 on Dec. 19, 2025, suggesting sentiment has slipped to a one-month low.
Bitcoin dropped about 7% to round $82,000 as merchants digested contemporary US political noise, together with studies that President Donald Trump will nominate former Federal Reserve Board member Kevin Warsh to switch present Fed Chair Jerome Powell.
@kev_warsh has emerged because the clear favourite to switch Jerome Powell as Fed chair, with prediction markets pricing his odds above 90%.#Trump #Fedhttps://t.co/nLtMjjh40N
— Cryptonews.com (@cryptonews) January 30, 2026
Trump stated late Thursday he would title his nominee on Friday morning, a day after lambasting Powell and the Fed for not selecting to scale back charges.
Long Liquidations Surge As Leverage Unwinds Across Crypto
The sell-off additionally pressured a broad unwind in leveraged positions. CoinGlass data confirmed $1.80B of liquidations over the previous 24 hours, dominated by longs at $1.68B versus $117.30M in shorts, with 280,430 merchants worn out in complete.
Linh Tran, senior market analyst at XS.com, stated Bitcoin is dealing with direct competitors from conventional defensive property, most notably gold.
“As geopolitical uncertainty and policy-related dangers intensify, markets are likely to favor property with a long-established function in danger hedging,” she stated.
“This treasured steel has recorded a sequence of sturdy consecutive beneficial properties and has not too long ago set a brand new all-time high round 5,600 USD/oz. Meanwhile, Bitcoin remains to be largely categorized as a high-risk asset throughout the asset allocation frameworks of most institutional buyers.”
Liquidity Conditions Keep Bitcoin Trailing Gold
Meanwhile, the CoinSwitch markets desk stated the leverage flush may regular the near-term tape if spot demand follows by.
“However, a decisive break beneath $82K may expose $79K–$80K, whereas sustained upside requires acceptance above $88,500, supported by enhancing spot demand and ETF flows,” they stated.
Kraken’s world economist, Thomas Perfumo, stated Bitcoin’s lag versus treasured metals has examined investor endurance.
“At first look, the macro backdrop is supportive: falling rates of interest and rising geopolitical uncertainty traditionally favor an asset considered as a hedge towards foreign money debasement and political instability,” he stated.
“Yet regardless of price cuts, world liquidity, the issue with the best affect on crypto market efficiency stays tight, underscoring that rates of interest are just one element of general liquidity circumstances. By distinction, gold traditionally advantages from a weakening US greenback.”
The publish Crypto Market Mood Weakens With Fear Index At Lowest Level Since December appeared first on Cryptonews.
