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Crypto fear and greed index plunges to 25 as Bitcoin drops below $93K

Crypto fear and greed index plunges to 25 as Bitcoin drops below $93K

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A physical bitcoin token.

Investor sentiment in the cryptocurrency market has taken a sharp turn toward extreme fear, with the crypto fear and greed index tumbling to 25—its lowest level since September 2024.

This dramatic shift comes as Bitcoin (BTC) drops below $93,000, triggering widespread sell-offs across major altcoins.

Ethereum (ETH) and Solana (SOL) have also suffered significant losses, plummeting 10% and 14%, respectively, while Bitcoin ETF outflows have crossed the $1 billion mark over the past two weeks.

The Fear and Greed Index, developed by Alternative.me, measures market sentiment on a scale from 0 (Extreme Fear) to 100 (Extreme Greed).

On Feb. 25, the index nosedived from 49 (Neutral) to 25 (Extreme Fear) in a single day, underscoring a rapid deterioration in investor confidence.

Why is the crypto market crashing?

Several factors have contributed to the latest downturn in crypto prices:

  • Massive Liquidations: According to Coinglass, the crypto market has witnessed nearly $882 million in liquidations in the past 24 hours, with $886 million coming from long positions. This wave of forced sell-offs has intensified market volatility.
  • Declining Open Interest: The total open interest in crypto derivatives has fallen by 5% to $108 billion, signaling reduced risk appetite among traders.
  • Macroeconomic Concerns: Investors remain jittery following US President Donald Trump’s announcement of 25% tariffs on Canada and Mexico, fueling concerns about a potential trade war. Meanwhile, Federal Reserve rate cut expectations are fading due to persistent inflation concerns.
  • Bybit Hack Fallout: The $1.4 billion Bybit hack—one of the largest exchange breaches in history—has further eroded trust, despite Bybit covering the losses. The incident has raised fresh security concerns in the crypto industry.

Despite the market turmoil, analysts suggest that the reaction remains more measured than past crashes, such as the 2022 FTX collapse.

While extreme fear dominates, the resilience of long-term investors suggests the market may be maturing.

However, if macro pressures persist, Bitcoin and altcoins could face further downside.

For now, all eyes remain on Bitcoin’s next move, as traders watch whether the flagship cryptocurrency can reclaim key support levels or if further sell-offs will drive the market lower.

Other alt/meme coins like Handshake, Harmony, Hedera Hashgraph, HedgeTrade, Helium, Hive, Holochain, Horizen, Huobi Token, Hypercash, Hyperion, ICON, ICOS, ImmutableX, Injective, Internet Computer, IOST, IOTA, IoTeX, and JasmyCoin came under pressure due to the broader market effect and were trading in the red at the time of writing.

The post Crypto fear and greed index plunges to 25 as Bitcoin drops below $93K appeared first on Invezz

Read the article at Invezz

In This News

Coins

$ 85.47K

-4.13%

$ 2.82K

-5.81%

$ 0.08

-6.44%

$ 0.0015

-6.44%

$ 117.88

-6.47%

Share:

In This News

Coins

$ 85.47K

-4.13%

$ 2.82K

-5.81%

$ 0.08

-6.44%

$ 0.0015

-6.44%

$ 117.88

-6.47%

Share:

Read More

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Crypto fear and greed index plunges to 25 as Bitcoin drops below $93K

Crypto fear and greed index plunges to 25 as Bitcoin drops below $93K

Share:

A physical bitcoin token.

Investor sentiment in the cryptocurrency market has taken a sharp turn toward extreme fear, with the crypto fear and greed index tumbling to 25—its lowest level since September 2024.

This dramatic shift comes as Bitcoin (BTC) drops below $93,000, triggering widespread sell-offs across major altcoins.

Ethereum (ETH) and Solana (SOL) have also suffered significant losses, plummeting 10% and 14%, respectively, while Bitcoin ETF outflows have crossed the $1 billion mark over the past two weeks.

The Fear and Greed Index, developed by Alternative.me, measures market sentiment on a scale from 0 (Extreme Fear) to 100 (Extreme Greed).

On Feb. 25, the index nosedived from 49 (Neutral) to 25 (Extreme Fear) in a single day, underscoring a rapid deterioration in investor confidence.

Why is the crypto market crashing?

Several factors have contributed to the latest downturn in crypto prices:

  • Massive Liquidations: According to Coinglass, the crypto market has witnessed nearly $882 million in liquidations in the past 24 hours, with $886 million coming from long positions. This wave of forced sell-offs has intensified market volatility.
  • Declining Open Interest: The total open interest in crypto derivatives has fallen by 5% to $108 billion, signaling reduced risk appetite among traders.
  • Macroeconomic Concerns: Investors remain jittery following US President Donald Trump’s announcement of 25% tariffs on Canada and Mexico, fueling concerns about a potential trade war. Meanwhile, Federal Reserve rate cut expectations are fading due to persistent inflation concerns.
  • Bybit Hack Fallout: The $1.4 billion Bybit hack—one of the largest exchange breaches in history—has further eroded trust, despite Bybit covering the losses. The incident has raised fresh security concerns in the crypto industry.

Despite the market turmoil, analysts suggest that the reaction remains more measured than past crashes, such as the 2022 FTX collapse.

While extreme fear dominates, the resilience of long-term investors suggests the market may be maturing.

However, if macro pressures persist, Bitcoin and altcoins could face further downside.

For now, all eyes remain on Bitcoin’s next move, as traders watch whether the flagship cryptocurrency can reclaim key support levels or if further sell-offs will drive the market lower.

Other alt/meme coins like Handshake, Harmony, Hedera Hashgraph, HedgeTrade, Helium, Hive, Holochain, Horizen, Huobi Token, Hypercash, Hyperion, ICON, ICOS, ImmutableX, Injective, Internet Computer, IOST, IOTA, IoTeX, and JasmyCoin came under pressure due to the broader market effect and were trading in the red at the time of writing.

The post Crypto fear and greed index plunges to 25 as Bitcoin drops below $93K appeared first on Invezz

Read the article at Invezz

In This News

Coins

$ 85.47K

-4.13%

$ 2.82K

-5.81%

$ 0.08

-6.44%

$ 0.0015

-6.44%

$ 117.88

-6.47%

Share:

In This News

Coins

$ 85.47K

-4.13%

$ 2.82K

-5.81%

$ 0.08

-6.44%

$ 0.0015

-6.44%

$ 117.88

-6.47%

Share:

Read More

Santiment Analyst Shares Expectations Regarding Bitcoin (BTC), Ethereum (ETH), and XRP!

Santiment Analyst Shares Expectations Regarding Bitcoin (BTC), Ethereum (ETH), and XRP!

A Santiment analyst stated that there was no collapse and shared his expectations for...
Bitwise files for a Uniswap ETF, but UNI’s price tells a different story

Bitwise files for a Uniswap ETF, but UNI’s price tells a different story

UNI reacted to the ETF news, but weeks of weakness still hang over the daily charts.