From Greed To Terror: Bitcoin’s Fall Below $104K Sparks Extreme Fear

Bitcoin's price pullback on Monday led to a decline in market sentiment, with prices dipping to a 24-hour low of $103,938. The Crypto Fear & Greed Index fell to 21 out of 100 on Tuesday, indicating "Extreme Fear" and the lowest level in nearly seven months. This sharp decline in sentiment was attributed to a mix of weak institutional flows and macro worries, including concerns about the Federal Reserve's stance. Bitcoin-tied exchange-traded funds recorded net outflows of nearly $800 million last week, and institutional buying recently fell below the amount of newly mined Bitcoin for the first time in seven months. The decline in institutional buying and outflows from exchange-traded funds reduced the steady inflows that had helped support prices. The price of Bitcoin recovered above $104,100 after the low, but the sharp intraday swing highlighted the fragility of the market. Traders are watching ETF flows, on-chain activity, and any fresh signals from US policymakers, which could impact the market's direction. If inflows return, they could stabilize the market, but if outflows continue, the pressure may deepen. Despite the current decline, market bulls point to seasonal history, noting that November has often been a strong month for Bitcoin, with average gains above 40% in past years. The Crypto Fear & Greed Index has been swinging between calm and alarm since the large sell-off in early October, and its current level suggests that investors are reassessing risk and becoming more cautious.