$BTC #bitcoin recently plunged to a low of $93,000, triggering a wave of “Extreme Fear” across the crypto market, as measured by the Fear & Greed Index.
Here’s a breakdown of what’s happening:
📉 Bitcoin Price Crash
- BTC dropped to $93,000, marking its lowest point in six months .
- The fall was sharp and sudden, with prices sliding from $104,000 to $94,480 within hours .
- This decline wiped out recent gains and signaled a breakdown in bullish momentum.
😨 Market Sentiment: “Extreme Fear”
- The Crypto Fear & Greed Index plunged to 10, its lowest since the COVID-19 crash .
- This index reflects investor sentiment, and such a low score indicates *widespread panic and uncertainty .
- The drop from 42 to 21 in a single day earlier in the week already hinted at growing anxiety..
📊 Contributing Factors
- Heavy outflows from spot Bitcoin ETFs have drained market liquidity .
- Long-term holders sold over 815,000 BTC (worth nearly $79 billion) in the past month⁽²⁾.
- Federal Reserve hawkishness and rising Treasury yields have spooked investors, leading to panic selling .
- Despite a recent $37 billion liquidity injection by the Fed, crypto markets failed to respond positively .
🔍 What’s Next?
- Analysts are watching upcoming U.S. inflation and jobs data, which could influence expectations for a December Fed rate cut.
- Some long-term holders are quietly accumulating BTC, viewing this dip as a potential buying opportunity .
- Volatility remains high, and sentiment could shift quickly depending on macroeconomic signals.
$BTC $LINEA #MarketPullback #Linea #AltcoinMarketRecovery #Morpho
