FameEX Hot Topics | Bitcoin Dips Below $106K, Sentiment Hits ‘Extreme Fear’

The Crypto Fear & Greed Index crashed on Tuesday, plunging by half from the prior day to a dismal 21 out of 100, firmly in “Extreme Fear” territory. This dramatic drop highlights intensifying panic among cryptocurrency investors as market momentum falters.

Bitcoin led the decline, hitting a 24-hour low of $105,540 on Monday after briefly surpassing $109,000 earlier in the session CLR. As of Tuesday, it trades above $106,500—down 2% daily per CoinGecko—but the swift reversal from recent highs signals deepening bearish sentiment and sustained selling pressure.

This marks the index’s lowest reading in nearly seven months, last reaching 18 on April 9 amid a sharp market sell-off triggered by President Trump’s implementation of broad global tariffs. The “Extreme Fear” zone was previously entered on October 22 with a score of 25, following Bitcoin’s drop from above $110,000 to under $108,000. Since the October 9–10 crash—when Bitcoin rapidly retreated from its $126,000 peak on October 6—the index has fluctuated between “Extreme Fear” and “Neutral.” Just weeks earlier, on October 5, it had climbed to 74, reflecting “Greed” before the abrupt reversal.

Analysts attribute the current downturn to multiple converging factors: reduced institutional participation, declining on-chain activity, and a shifting Federal Reserve policy outlook. Although the Fed executed its second rate cut of the year on Wednesday, its guidance indicated no additional reductions in 2025—contrary to market hopes for ongoing monetary easing—prompting widespread risk-off behavior in crypto. Reinforcing the bearish tone, Bitcoin spot ETFs recorded nearly $800 million in net outflows last week, with institutional inflows falling below daily mined supply for the first time in seven months. Despite the gloom, optimistic traders are banking on historical seasonality, dubbing November “Moonvember” due to Bitcoin’s average 42% gain—the strongest monthly performance on record—as a potential catalyst for recovery.1.5sFast

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