Crypto market Plunges as Fear and Greed Index Hits 25
The crypto fear and greed index has plummeted to 25, the lowest since September 2024. This indicates extreme market fear as Bitcoinâs price dips below $93,000.The index, created by Alternative, gauges market sentiment on a scale from 0 (Extreme Fear) to 100 (Extreme Greed).
On February 25, the index fell 24 points from 49 to 25 in just one day, shifting from âNeutralâ to âExtreme Fear.â This is the lowest level as 2024 when it was at 22. The drop comes after a broad market sell-off.In the past 24 hours, Ethereum and Solana have lost 10% and 14%, respectively, while Bitcoin fell below $93,000.
Withdrawals from Bitcoin ETFs have surpassed $1 billion in two weeks. Coinglass data shows $957.85 million in liquidations, with $886.47 million from long positions. Open interest has decreased by 5% to $108 billion, showing reduced risk tolerance.
Market strain is partly due to macroeconomic uncertainty. U.S. President Donald Trumpâs plan for tariffs on Canada and Mexico and concerns about the Fed delaying rate cuts due to high inflation have kept borrowing rates high. The $1.4 billion Bybit hack has also hurt market sentiment, despite Bybit covering the loss.
Analysts note the marketâs response is more measured than during the FTX collapse in 2022, suggesting a maturing cryptocurrency market.
