Why Is Crypto Down Today: Market Slips Into ‘Extreme Fear’ After BTC Fails to Hold $100,000
The cryptocurrency market has entered a phase of 'extreme fear' as the Fear & Greed Index dropped to 10, a nine-month low. This decline follows significant losses in major cryptocurrencies, particularly Bitcoin, which fell below $100,000 this month and is now nearing $96,000, reflecting a 5% drop over the past week. The broader crypto market lost approximately 5.8% in value. Key factors contributing to this sell-off include profit-taking by long-term holders, institutional outflows, macroeconomic uncertainty, and lower liquidity levels following an October crash. There is also prevalent concern about potential interest rate changes by the Federal Reserve, with uncertainty around recent economic indicators due to delays caused by a government shutdown. These combined factors have created a downward trend in market sentiment after a period of consolidation in crypto prices.
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