Crypto Sentiment: Extreme Fear as Bitcoin Falls Below $106.000

Crypto Sentiment Plunges Into Extreme Fear As Bitcoin Drops Below $106K

4 November 2025 at 11: 35

Reading time: 2 minutes

Crypto market sentiment took a significant drop on Tuesday as Bitcoin For the first time in over three weeks, the cryptocurrency fell below $106.000. The Crypto Fear & Greed Index plummeted by half from the previous day to a score of 21 on Tuesday, indicating a state of "Extreme Fear" in the market.

Bitcoin (BTC) reached a 24-hour low of $105.540 on Monday, after having touched above $109.000 earlier in the day. Currently, the cryptocurrency is down 2% but hovering just above $106.500, according to data from CoinGecko.

The crypto sentiment index's current score is the lowest in nearly seven months, a departure from April 9 when it dropped to 18. This came amid a broader decline in equity and crypto markets following the sweeping global tariffs implemented by US President Donald Trump at the time.

The Impact of “Extreme Fear” on the Market

The Crypto Fear & Greed Index reached "Extreme Fear" status on October 22, with a score of 25, as Bitcoin fell from over $110.000 to below $108.000. The index has fluctuated between "Extreme Fear" and "Neutral" in recent weeks, particularly after the October 9-10 market crash, when Bitcoin experienced a sharp decline from a high of over $126.000 on October 6.

Before the crash in early October, the index had been trading above the "Neutral" zone, peaking at 74 on October 5th, indicating a period of "Greed." These fluctuations offer insight into how sentiment and expectations can influence the market.

Analysts point to several factors contributing to Bitcoin's recent decline: a decline in institutional demand, reduced blockchain activity, and growing concerns about the Federal Reserve's increasingly austerity policies. The Fed cut interest rates this week for the second time this year but indicated that no further cuts might occur until 2025. This led to a further decline in crypto markets as investors anticipated additional rate cuts.

Last week, Bitcoin-linked exchange-traded funds (ETFs) saw net outflows of nearly $800 million. Institutional buying activity also fell below the daily supply of Bitcoin, for the first time in seven months.

Nevertheless, crypto optimists remain hopeful for a so-called "Moonvember"; historically, November is a stronger month for Bitcoin, with average growth of over 42% during this period. It's a time when many investors want to hold their positions in anticipation of a potential recovery.

Frequently Asked Questions

What does Bitcoin's recent drop mean for investors?
The decline could indicate greater volatility and risk in the market, but also offers opportunities for investors willing to buy against the trend.

How should analysts interpret fluctuations in the Crypto Fear & Greed Index?
Fluctuations in this index provide insight into market sentiment and can serve as an indicator of potential buy or sell strategies depending on the current score.

What are the implications of institutional outflows for the crypto market?
Institutional outflows could indicate a decline in confidence among large investors, potentially leading to further price pressure and a challenging environment for new investments.

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