Bitcoin dropped below $104,000 for the first time in over three weeks, sending the Crypto Fear & Greed Index plummeting to 21, its lowest level in nearly seven months. That’s deep in “Extreme Fear” territory, showing just how spooked investors have gotten.
The index fell by half in a single day Tuesday after Bitcoin slid from above $109,000 down to $103,540 before recovering slightly above $104,000. The last time sentiment got this bad was April 9th, when it hit 18 amid Trump’s tariff chaos.
What’s killing the mood is a combination of things hitting all at once. Institutional investors pulled nearly $800 million out of Bitcoin ETFs last week, the first time their buying has dropped below the daily mined Bitcoin supply in seven months. That’s a pretty clear sign the smart money is backing away.
The Federal Reserve didn’t help either. They cut rates for the second time this year on Wednesday but then basically said don’t expect any more cuts in 2025. That hawkish stance crushed hopes for easier monetary policy going forward.
Before the early October crash from $126,000, the index was at 74, showing pure greed. Now it’s swung completely the other way. Some analysts think extreme fear often marks good buying opportunities, but current data shows sustained caution, with blockchain activity slowing down across the board.
Conclusion
Bitcoin fell below $104,000 as the Crypto Fear & Greed Index crashed to 21, signaling Extreme Fear, driven by $800 million ETF outflows and the Fed’s hawkish rate stance eliminating 2025 cut expectations.
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