From Greed To Terror: Bitcoin’s Fall Below $104K Sparks Extreme Fear

[Ben Graham]

Bitcoin’s pullback on Monday sent a quick chill through crypto markets, pulling sentiment down to levels not seen in months. Prices dipped to a 24-hour low of $103,938 after earlier trading above $109,000, and gauges of market mood turned sharply negative as investors reassessed risk.

Crypto Fear Hits Extreme Readings

According to the Crypto Fear & Greed Index, the score fell to 21 out of 100 on Tuesday, a move that registers as “Extreme Fear.”

That mark is the lowest in nearly seven months; the index previously hit 18 out of 100 on April 9, when markets reacted to US President Donald Trump’s global tariff measures.

Reports have disclosed that the index has been swinging between calm and alarm since the large sell-off in early October, when readings tumbled after prices slid from a peak above $126,000 on Oct. 6.

Market participants pointed to a mix of weak institutional flows and macro worries. Based on reports, Bitcoin-tied exchange-traded funds recorded net outflows of nearly $800 million last week.

Analysts said institutional buying recently fell below the amount of newly mined Bitcoin for the first time in seven months. Those trends reduce the steady inflows that had helped support prices.

Price Action & Short-Term Drivers

Bitcoin recovered above $104,100 after the low, but the sharp intraday swing highlighted fragility. Some traders blamed cooling activity on exchanges and wallets, while others flagged concerns about the Federal Reserve’s stance.

The Fed cut interest rates for the second time this year on Wednesday, yet signaled there may not be more cuts in 2025. That hint of a less-accommodating outlook appeared to catch investors off guard, prompting quick re-pricing in both stock and crypto markets.

There are also technical points at play. The Crypto Fear & Greed Index last fell into the “Extreme Fear” zone on Oct. 21 when it hit 25 out of 100, after Bitcoin slid from over $110,000 to below $108,000.

Earlier, the index had topped 70 — a “Greed” reading — showing how fast sentiment can flip when price moves accelerate.

What Traders Are Watching Next

Traders will be watching ETF flows, on-chain activity, and any fresh signals from US policymakers. Based on reports, lower blockchain activity and fewer large buys by institutions have been cited as immediate reasons for the decline.

If inflows return, they could stabilize the market. If outflows continue, the pressure may deepen.

Market bulls, however, still point to seasonal history. According to historical patterns cited by some analysts, November has often been a strong month for Bitcoin, with average gains above 40% in past years.

Featured image from Gemini, chart from TradingView