Crypto Market Hits 'Extreme Fear': Is This the Bottom?
Market Plunge: Fear & Greed Index Hits Extreme Fear
The cryptocurrency market has taken a significant hit, with the Fear & Greed Index diving into 'extreme fear'. Bitcoin (BTC) has dropped to $74,500, marking a low not seen since April 2025. The total market cap has also fallen to its lowest point this year.
The RSI for most cryptocurrencies indicates oversold conditions, with intense selling pressure creating chaos and uncertainty in the market.
Is Bitcoin at Its Lowest?
As of now, the Fear & Greed Index has plummeted from 'Fear' at 29 to 'Extreme Fear' at 14, reflecting a broad market downturn. Bitcoin's struggles are mirrored across the cryptocurrency landscape, with its RSI falling below 30, signaling extreme oversold conditions.
Ethereum (ETH) is also in a similar oversold state, with 14.4% of assets affected, leaving investors wary of further declines.
Crypto Market Cap Declines
The cryptocurrency market cap has decreased to $2.55 trillion, a significant drop from earlier in 2025. This suggests a potential market bottom, though failure to hold these levels could lead to further declines.
Factors for Market Improvement
Market conditions could improve with regulatory clarity, like the 2026 Clarity Act, and potential U.S. Federal Reserve rate cuts. Without such policy changes, volatility may continue. In January, Bitcoin saw $890 million in outflows, indicating shifting investor sentiment.
Final Thoughts
- The crypto market is fragile, with Bitcoin's price below $75,000 and extreme fear among investors.
- Recovery hinges on regulatory clarity and institutional confidence.