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Tuesday witnessed a crypto bloodbath as Bitcoin’s three-week stronghold crumbled, briefly plunging below $106,000 and sending market sentiment into a tailspin.
Crypto investors woke up Tuesday to a chilling reality: the Fear & Greed Index plummeted by 50% overnight, crashing to a score of just 21. The market is gripped by “Extreme Fear,” a stark warning that sentiment has taken a sharp turn for the worse.
Bitcoin Wobbles: Rollercoaster Ride Dips to $105K
Bitcoin (BTC) took investors on a wild ride Monday, briefly plunging to a 24-hour low of $105,540 before staging a tentative recovery. After flirting with $109,000 earlier in the day, the dip sent shivers through the market. Currently, the flagship cryptocurrency is clawing its way back, trading above $106,500, though still down 2% on the day, according to CoinGecko. Is this a temporary blip or a sign of further turbulence ahead?
Crypto sentiment just cratered. The Crypto Fear & Greed Index plunged to a dismal 18/100 on April 9th, a seven-month low, mirroring the wider market’s nosedive after President Trump’s global tariffs took effect.
The Crypto Fear & Greed Index dropped from 42 to 21 points in a single day on Tuesday. Source: Alternative.me
“Extreme Fear” seen when Bitcoin slides
Last seen cowering in “Extreme Fear” territory on October 22nd, the Crypto Fear & Greed Index whimpered to a score of 25 out of 100. What spooked the market? Bitcoin’s brief stumble from a lofty $110,000+ to a slightly-less-lofty sub-$108,000 level sent shivers down investors’ spines.
Since Bitcoin’s rapid descent from its $126,000 peak on October 6th, the market’s emotional barometer has been whipsawing wildly. Forget steady ground – we’ve lurched from the pit of “Extreme Fear” to the uneasy calm of “Neutral,” painting a picture of instability and uncertainty.
Before the October market plunge, the index flirted with a “Greed” level, peaking at a score of 74 on October 5th a high point before reality bit. It hasn’t seen “Neutral” territory since.
Bitcoin’s recent tumble? Blame skittish big money, a blockchain buzzing less, and the Fed’s tightening grip on the money supply.
Crypto markets shuddered Wednesday as the Fed, despite a second rate cut this year, hinted at a 2025 pause. Investor hopes for continued easing deflated, sending digital assets tumbling.
A chilling breeze swept through Bitcoin ETFs last week, as nearly $800 million vanished. For the first time in seven months, institutional appetite waned, dipping below the daily harvest of freshly-mined Bitcoin. Is this a temporary chill or the start of a crypto winter?
Forget pumpkin spice; crypto traders are craving “Moonvember.” November’s historically been Bitcoin’s rocket launchpad, blasting off with average gains exceeding 42%. Will history repeat, or will this year’s ride be a bumpy one?
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