Crypto Fear Index Plunges as Bitcoin Slides Below $100K Again

Crypto market sentiment has taken a steep downturn, with the Crypto Fear & Greed Index dropping to 10, signaling a state of “extreme fear” and marking its lowest level since late February. The sharp decline comes after a challenging week across major digital assets, led by bitcoin’s retreat to just under $96,000, its second break below the $100,000 threshold this month. The downturn extends bitcoin’s multi-week slide from its record high above $120,000, pulling the broader market lower as well.

According to data, bitcoin has fallen more than 5% over the past seven days, trading at price levels not seen since early March. The broader market mirrored this trend, with the CoinDesk 20 (CD20) index losing approximately 5.8% during the same period, reflecting widespread risk-off sentiment among crypto investors.

Analysts attribute the sell-off to a combination of factors. Nansen Senior Research Analyst Jake Kennis noted that the pullback results from profit-taking among long-term holders, institutional outflows, macroeconomic uncertainty, and the liquidation of highly leveraged long positions. After months of consolidation, these pressures have pushed the market decisively downward, at least for now.

Macro headwinds are adding fuel to the decline. Expectations for an imminent interest rate cut from the Federal Reserve have dampened, with CME’s FedWatch tool currently estimating roughly 50% odds of a 25-basis-point reduction. Prediction markets like Kalshi and Polymarket reflect similar uncertainty.

Complicating matters further, the White House announced that key economic releases—including October inflation data—may be delayed due to backlogs caused by the recent government shutdown. That leaves traders navigating without crucial macro indicators.

Liquidity conditions have also deteriorated. Market depth across major centralized exchanges remains structurally thinner following the intense volatility shock in October, making price swings more severe and contributing to the fragility seen this week.

Together, these forces have pushed sentiment to its weakest point in months, reinforcing investor caution as the crypto market faces heightened volatility and reduced confidence.