Why Is Crypto Down Today: Market Slips Into ‘Extreme Fear’ After BTC Fails to Hold $100,000 Level
The crypto market entered 'extreme fear' as Bitcoin dropped below $100,000 due to profit-taking, institutional outflows, and macro uncertainty.Summary
The cryptocurrency market sentiment has severely deteriorated, pushing the Fear & Greed Index down to 10, signaling 'extreme fear'—the lowest level in nearly nine months. This decline follows a week of losses where Bitcoin fell below the $100,000 mark to just under $96,000, marking a significant drop from its all-time high above $120,000. According to Jake Kennis, Senior Research Analyst at Nansen, the sell-off is a combination of profit-taking by long-term holders (LTHs), institutional outflows, macroeconomic uncertainty, and the liquidation of leveraged long positions. Further contributing factors include fading expectations for a Federal Reserve interest rate cut this month and reduced macro data availability following a government shutdown. Compounding these issues is structurally low liquidity across major centralized exchanges following the October crash, which heightens the risk of sharp price swings.
(Source：CoinDesk)