Investor sentiment in the cryptocurrency market has turned sharply negative. The “Fear and Greed” index fell to 21 out of 100 on Tuesday – the lowest level in seven months, indicating “extreme fear” in the market.
The drop came after
Bitcoin’s price fell below $106,000 for the first time in three weeks, falling to $105,540. At the time of writing, Bitcoin is trading in the $106,500 range.
Analysts attribute the recent decline to a decline in institutional demand, a drop in activity on the Bitcoin network, and concerns about the Federal Reserve’s tightening policies. Although the US central bank cut interest rates for the second time this year, it has said that another cut is unlikely in 2025, which has disappointed the market.
Meanwhile, Bitcoin ETFs have also seen an outflow of around $800 million over the past week. This has fueled bearish sentiment among retail investors, although some are still hopeful that the crypto market will see significant growth in November, in line with its historical patterns.
