Crypto Fear and Greed Index is at 25, the lowest level since September 2024 indicates excessive fear in the market as bitcoin falls below $ 93,000.
The software development firm measures the market spirit on a scale of 100 (extreme greed) on the scale of fear and greed index, 0 (extreme fear) provided by optional.
By February 25, is in the index Dropped 24 points from 49 to 25 in a single day, the lowest level of “neutral” to “extreme fear” since 2024, when it stood at 22.
This sharp decline is after selling a broad market. In the last 24 hours, Ethereum (Eth) and Solana (SOL) have fallen 10% and 14% respectively, while Bitcoin (BTC) has fallen below $ 93,000. The coincidence with the decline of bitcoin, withdrawal from bitcoin ETFs has now exceeded $ 1 billion in the last two weeks.
According to coinglass dataThe fall in the Crypto market rose to $ 957.85 million in liquidation, of which $ 886.47 million came from long positions.
Meanwhile, open interest has declined by 5% to $ 108 billion, indicating a decline in risk tolerance. Increase in liquidation indicates an already optimistic currency, which spoiled the sale of leveraged positions.
This pullback can be largely triggered by additional stress on the crypto markets due to macroeconomic uncertainty.
The markets have been revealed by US President Donald Trump on 24 February that their administration will proceed with 25% tariffs on Canada and Mexico. In addition, concerns about the delay rate cuts due to high-to-adapt inflation figures have kept the borrowing rates high.
$ 1.4 billion bybit hack, which is one of the largest exchange feats ever, has also negatively affected the market spirit. While bybit has been successful in covering the loss from hack, the market is still away from the security concerns around the incident.
However, analysts mentioned that the market response is still more measured during the FTX collapse in 2022, while the emotion is weak. It indicates a mature crisprochery market.
