The cryptocurrency market has plunged into 'extreme fear' territory, with Bitcoin dropping below $100,000 for the second time this month. The Fear & Greed Index hit a low of 10, its lowest since late February, amid a week of significant losses across major assets. Factors including profit-taking, institutional outflows, and macroeconomic uncertainty are driving the sell-off.
Bitcoin led the decline in the cryptocurrency market, falling over 5% in the past seven days to trade around $96,000, levels not seen since early March. This marks the second time this month the largest cryptocurrency has slipped below the $100,000 mark, following a 12-day slide. The wider market, as measured by the CoinDesk 20 index, lost approximately 5.8% of its value over the week, contributing to a monthly loss exceeding $700 billion.
Sentiment has deteriorated sharply, with the Fear & Greed Index dropping to 10, indicating 'extreme fear' comparable to bear market phases in early 2022 and June 2022. Nearly 99% of Bitcoin investors who accumulated over the past 155 days are now holding at a loss, as the price tumbles below the 6–12 month UTXO realized price of around $94,600 and the 365-day moving average near $102,000.
Analysts attribute the sell-off to multiple factors. 'The selloff is a confluence of profit-taking by LTHs, institutional outflows, macro uncertainty, and leveraged longs getting wiped out,' said Jake Kennis, Senior Research Analyst at Nansen. 'What is clear is that the market has temporarily chosen a downward direction after a long period of consolidation/ranging.' Additional pressures include fading hopes for a Federal Reserve interest rate cut this month, with odds at about 50%, and delays in key economic data like October inflation due to a recent government shutdown. Low liquidity persists since the October crash, exacerbating price swings.
Despite the downturn, institutional interest remains. Harvard has made Bitcoin ETFs its largest position, while the UAE's Al Warda sovereign wealth fund increased its exposure by 230% since June 2025, holding 7.9 million shares worth $517 million. On-chain data shows sell-side pressure from existing spot holders, but technical indicators like oversold RSI and mixed MACD suggest a mid-cycle correction rather than a confirmed bear market.