Crypto Fear Index Hits Extreme Lows as Bitcoin Tests Bear Market Threshold
The cryptocurrency market is gripped by panic, with the Fear and Greed Index plunging to 21—barely recovering from a record low of 10 following the October 10 crash. Bitcoin’s price collapse from $126,000 to $98,000 erased $19 billion in leveraged positions, while altcoins like SOL and XRP plummeted over 40% in hours.
Liquidity evaporated as market makers retreated, ETF inflows reversed, and Google search interest for 'Bitcoin' dwindled. Despite slight stabilization, the market remains entrenched in fear. Retail participation has weakened, with global searches for crypto-related terms declining sharply.
Tariff war tensions between the U.S. and China exacerbated the sell-off, leaving order books thin and institutional demand faltering. The question now is whether this marks a corrective phase or the onset of a prolonged bear market.
