Crypto Slides into “Extreme Fear” as Bitcoin Tumbles

The cryptocurrency market has seen a significant decline, with major cryptocurrencies dropping between 3% to 8%. Bitcoin recently fell to $104,500, marking a shift in sentiment to 'Extreme Fear' as indicated by the Fear & Greed Index, which now sits at a score of 21. This represents a stark contrast to the 'Greed' levels experienced just a month prior. Recent data revealed that long-term Bitcoin holders sold approximately $40 billion worth of Bitcoin in October, further contributing to market anxiety. The situation indicates a liquidity stress where fears may lead to increased liquidations and forced selling, shifting the narrative from institutional adoption to survival and risk management. Historical patterns suggest that deep fear in the market could signal a buying opportunity if certain conditions align. Observing outflows from major holders and the market's recovery past key price levels may offer insights into potential upward movements in 2026.

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