The Crypto Fear & Greed Index has dropped to 25, signaling extreme fear in the market as Bitcoin falls below $93,000. This marks the lowest sentiment level since September 2024, reflecting increased uncertainty among investors.

Market Sentiment Deteriorates Rapidly

The Fear and Greed Index, which ranges from 0 (Extreme Fear) to 100 (Extreme Greed), has fallen 24 points in a single day, shifting from Neutral (49) to Extreme Fear (25). The last time it reached similar levels was in 2024, when it hit 22.

This sharp decline coincides with a broader crypto market sell-off, where major assets have suffered significant losses:

• Bitcoin (BTC): Falls below $93,000 (-3.82%)
• Ethereum (ETH): Drops 10%
• Solana (SOL): Plunges 14%

Additionally, Bitcoin ETF withdrawals have exceeded $1 billion in the past two weeks, contributing to the market's negative outlook.

Liquidations Surge as Open Interest Declines

Market data from Coinglass highlights a severe impact on leveraged positions:

• $957.85 million liquidated in the last 24 hours
• $886.47 million from long positions
• Open interest down 5% to $108 billion

The spike in liquidations suggests an overly bullish market stance that has now reversed, triggering a cascade of sell-offs.

Macro Uncertainty and Security Concerns Weigh on Markets

Beyond technical factors, macroeconomic events have fueled further instability:

• U.S. President Donald Trump announced 25% tariffs on Canada and Mexico, unsettling global markets.
• Higher-than-expected inflation data has led to concerns that the Federal Reserve may delay interest rate cuts.
• The $1.4 billion Bybit hack, one of the largest exchange exploits ever, has raised security fears despite Bybit covering the losses.

A Maturing Market Despite Extreme Fear

Despite the weak sentiment, analysts note that the market response remains more measured compared to past crises, such as the FTX collapse in 2022. This suggests that the cryptocurrency market is becoming more resilient to external shocks.

With uncertainty at its peak, traders will be closely watching macro developments, ETF flows, and institutional behavior for signs of market stabilization.