Crypto market sentiment took a sharp hit on Tuesday after Bitcoin briefly dipped below $106,000 for the first time in more than three weeks.
The Crypto Fear & Greed Index plunged by half from the previous day to a score of 21 out of 100, signaling a mood of “Extreme Fear” across the market.
Bitcoin touched a 24-hour low of $105,540 on Monday, retreating from an intraday high above $109,000. It has since recovered slightly, trading above $106,500 but still down 2% on the day, according to CoinGecko.
Tuesday’s reading marks the index’s lowest level in nearly seven months, since it last hit 18 out of 100 on April 9—when global markets, including crypto, slumped in response to U.S. President Donald Trump’s sweeping new tariffs.
“Extreme Fear” returns as Bitcoin slides
The Crypto Fear & Greed Index once again dropped into “Extreme Fear” territory on Oct. 22, hitting a score of 25 out of 100 after Bitcoin fell from above $110,000 to below $108,000.
Since the sharp market correction on Oct. 9–10—when Bitcoin plunged from its Oct. 6 peak of over $126,000—the index has fluctuated between “Extreme Fear” and “Neutral.” Before that downturn, the index last showed signs of optimism on Oct. 5, reaching a monthly high of 74, or “Greed.”
Analysts attribute Bitcoin’s latest pullback to weakening institutional demand, declining on-chain activity, and growing unease over a more hawkish Federal Reserve.
Although the Fed cut interest rates for the second time this year on Wednesday, its indication that no further cuts are likely in 2025 rattled investor sentiment, triggering a selloff in crypto markets.
Adding to the pressure, Bitcoin-linked exchange-traded funds recorded nearly $800 million in net outflows last week, with institutional buying dropping below the daily mined supply for the first time in seven months.
Still, crypto optimists are eyeing a potential “Moonvember,” noting that Bitcoin has historically surged by an average of more than 42% during November—its strongest month on record.
