Crypto markets are sliding again, weighed down by a mix of profit-taking, institutional withdrawals, macro uncertainty and still-thin liquidity — a combination that has pushed sentiment to its lowest point in nearly nine months.
The Fear & Greed Index has plunged to 10, firmly in the “extreme fear” zone and marking its weakest reading since late February. The fall in sentiment comes after a week of widespread declines across major cryptocurrencies, led by bitcoin’s drop to just under $96,000. It’s the second time this month the largest digital asset has fallen back below the $100,000 threshold.
The index — a widely watched measure of investor mood — reflects growing anxiety after bitcoin lost more than 5% over the past seven days. BTC is now trading at levels last seen in early March, extending its slide from record highs above $120,000.
The broader crypto market has not been spared: the CoinDesk 20 (CD20), which tracks the most liquid digital assets, shed roughly 5.8% over the week.
“The selloff is a confluence of profit-taking by long-term holders, institutional outflows, macro uncertainty and leveraged longs getting wiped out,” said Jake Kennis, Senior Research Analyst at Nansen. “What is clear is that the market has temporarily chosen a downward direction after a long period of consolidation.”
Macroeconomic concerns are adding fuel to the decline. Expectations for a Federal Reserve rate cut this month have faded, with the CME FedWatch tool showing odds for a 25 basis-point cut hovering around 50%. Prediction markets like Kalshi and Polymarket reflect similar sentiment.
Uncertainty is being compounded by potential delays in key U.S. economic data releases — including October inflation — after disruptions from the recent government shutdown. With fewer macro indicators available, traders have less guidance on market direction.
Liquidity remains another major challenge. Order-book depth on centralized exchanges has not recovered from October’s crash and continues to sit at depressed levels, making the market more vulnerable to sharp moves as selling pressure rises.
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