FameEX Hot Topics | ‘Extreme Fear’ Grips Crypto Market with Bitcoin Under $106K

The Crypto Fear & Greed Index plummeted on Tuesday, halving from the previous day to a stark score of 21 out of 100, signaling “Extreme Fear” across the cryptocurrency market. This sharp decline reflects growing investor anxiety as market conditions deteriorate rapidly.

Bitcoin itself mirrored the sentiment, tumbling to a 24-hour low of $105,540 on Monday after peaking above $109,000 intraday. Though it has since recovered slightly to trade above $106,500—down 2% on the day, according to CoinGecko—the drop underscores persistent selling pressure and eroded confidence.

Tuesday’s index reading of 21 marks its lowest level in nearly seven months, last seen at 18 on April 9 amid a broader market rout triggered by President Trump’s sweeping global tariffs. The index previously dipped into “Extreme Fear” on October 22 with a score of 25, following Bitcoin’s slide from over $110,000 to below $108,000. Since early October’s crash—when Bitcoin cooled from a $126,000 peak—the index has oscillated between “Extreme Fear” and “Neutral,” having last entered “Greed” territory (74) on October 5.

Analysts point to multiple headwinds fueling the downturn: waning institutional demand, declining blockchain activity, and a more hawkish Federal Reserve stance. Despite cutting rates for the second time this year on Wednesday, the Fed signaled no further reductions in 2025—dashing hopes for continued easing and triggering fresh crypto sell-offs. Compounding the pressure, Bitcoin spot ETFs recorded nearly $800 million in net outflows last week, with institutional buying falling below daily mined supply for the first time in seven months. Amid the gloom, crypto bulls cling to historical precedent, eyeing a potential “Moonvember”—November’s average 42% Bitcoin gain, typically its strongest month.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.