Cryptocurrency market sentiment plummeted on Tuesday after Bitcoin briefly fell below $106,000 for the first time in more than three weeks.
The Crypto Fear & Greed Index on Tuesday fell by half from the previous day to 21 points out of 100, indicating “extreme fear” in the crypto market.
Bitcoin (BTC) fell from an intraday high of over $109,000 on Monday to a 24-hour low of $105,540. According to CoinGecko, the stock is currently down 2% on the day and has recovered to $106,500.
The Cryptocurrency Sentiment Tracking Index’s score on Tuesday fell to 18 out of 100 on April 9, its lowest level in nearly seven months, as stock and crypto markets overall fell in response to President Donald Trump’s sweeping global tariffs that went into effect that day.
“Extreme fear” seen when Bitcoin falls
The last time the Crypto Fear and Greed Index fell to the “extreme fear” level was on October 22, when it hit 25 out of 100 after Bitcoin fell from more than $110,000 to below $108,000.
After the October 9-10 market crash, Bitcoin prices rapidly cooled from a high of over $126,000 on October 6, and the index oscillated between “extreme fear” and “neutral.”
The index last surpassed a “neutral” score before the crash in early October, hitting a one-month high of 74, indicating “greed,” on Oct. 5.
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Analysts attribute Bitcoin’s current decline to declining institutional demand and blockchain activity, as well as concerns about an increasingly hawkish Federal Reserve.
The Federal Reserve on Wednesday cut interest rates for the second time this year, but signaled it may not do so again in 2025, triggering a selloff in the cryptocurrency market as investors expected further rate cuts.
Bitcoin-related exchange-traded funds recorded net outflows of nearly $800 million last week, with institutional buying falling below daily mining supply for the first time in seven months.
Crypto bulls are hoping for a so-called “Moonbenture” as Bitcoin has historically rallied more than 42% on average in November, which is usually the best month for growth.
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