Why Is Crypto Down Today: Market Slips Into ‘Extreme Fear’ After BTC Fails to Hold $100,000
The cryptocurrency market has fallen into a state of 'extreme fear,' as indicated by a drop in the Fear & Greed Index to 10, its lowest since February. Bitcoin has experienced significant losses, dropping over 5% in the past week and trading just under $96,000, a decline that follows a previous fall below the $100,000 mark. The overall crypto market's value decreased by 5.8% due to a combination of factors including profit-taking, institutional outflows, macroeconomic uncertainty, and low liquidity. The Federal Reserve's recent statements regarding interest rate cuts have added to the market's instability, while the lack of key economic indicators releases due to government shutdown delays has left traders with insufficient macrodata. Additionally, market liquidity remains low after the severe crash seen in October. Analysts note that these conditions have created a downward trajectory for cryptocurrencies after a prolonged phase of consolidation and stability in the market.
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