From Greed To Terror: Bitcoin’s Fall Below $104K Sparks Extreme Fear
Bitcoin’s pullback on Monday despatched a fast chill via crypto markets, pulling sentiment right down to ranges not seen in months. Prices dipped to a 24-hour low of $103,938 after earlier buying and selling above $109,000, and gauges of market temper turned sharply unfavourable as buyers reassessed threat.
Crypto Fear Hits Extreme Readings
According to the Crypto Fear & Greed Index, the rating fell to 21 out of 100 on Tuesday, a transfer that registers as “Extreme Fear.”
That mark is the bottom in practically seven months; the index beforehand hit 18 out of 100 on April 9, when markets reacted to US President Donald Trump’s world tariff measures.
Reports have disclosed that the index has been swinging between calm and alarm for the reason that massive sell-off in early October, when readings tumbled after costs slid from a peak above $126,000 on Oct. 6.
Market members pointed to a mixture of weak institutional flows and macro worries. Based on experiences, Bitcoin-tied exchange-traded funds recorded internet outflows of practically $800 million final week.
Analysts stated institutional shopping for just lately fell under the quantity of newly mined Bitcoin for the primary time in seven months. Those traits cut back the regular inflows that had helped assist costs.
Price Action & Short-Term Drivers
Bitcoin recovered above $104,100 after the low, however the sharp intraday swing highlighted fragility. Some merchants blamed cooling exercise on exchanges and wallets, whereas others flagged issues concerning the Federal Reserve’s stance.
The Fed reduce rates of interest for the second time this 12 months on Wednesday, but signaled there will not be extra cuts in 2025. That trace of a less-accommodating outlook appeared to catch buyers off guard, prompting fast re-pricing in each inventory and crypto markets.
There are additionally technical factors at play. The Crypto Fear & Greed Index final fell into the “Extreme Fear” zone on Oct. 21 when it hit 25 out of 100, after Bitcoin slid from over $110,000 to under $108,000.
Earlier, the index had topped 70 — a “Greed” studying — exhibiting how briskly sentiment can flip when worth strikes speed up.
What Traders Are Watching Next
Traders can be watching ETF flows, on-chain exercise, and any recent alerts from US policymakers. Based on experiences, decrease blockchain exercise and fewer massive buys by establishments have been cited as speedy causes for the decline.
If inflows return, they may stabilize the market. If outflows proceed, the strain could deepen.
Market bulls, nevertheless, nonetheless level to seasonal historical past. According to historic patterns cited by some analysts, November has typically been a robust month for Bitcoin, with common positive aspects above 40% in previous years.
Featured picture from Gemini, chart from TradingView
