 ▲ Bitcoin (BTC), Fear / ChatGPT-generated image |
The cryptocurrency market has been gripped by extreme fear, with investor sentiment freezing at one of the worst levels on record.
According to crypto-focused outlet BeInCrypto on February 12 (local time), the Crypto Fear & Greed Index currently stands at 11, remaining in the “Extreme Fear” zone. This marks a dramatic reversal in market sentiment within just a few days, compared to a reading of 61 a week ago, which indicated “Greed.”
The decline in the index accelerated as Bitcoin (BTC) fell below the psychological support level of $70,000. Amid sustained selling pressure, Bitcoin recently dropped to the $67,000 range, triggering the forced liquidation of more than 182,000 investors in the futures market. In a single day alone, liquidations exceeded $1.08 billion, inflicting massive losses on traders who had bet on long positions.
Macroeconomic uncertainty has also emerged as a key factor weighing on the market. Comments by U.S. President Donald Trump regarding tariff policies and a hawkish economic stance reaffirmed by U.S. Treasury Secretary Scott Bessent at the Davos Forum have fueled risk-off sentiment among investors. As global macroeconomic concerns intensify, more than $120 billion in cryptocurrency market capitalization evaporated within just 24 hours.
Technical analysts note that the current index level is approaching its lowest point since 2019. With buying momentum largely absent, even the $65,000 support level is under threat, heightening fears of further declines among market participants. Analysts warn that a vicious cycle is unfolding, in which forced selling from deleveraging positions is accelerating the downward pressure on prices.
As panic selling spreads across the broader cryptocurrency market, investors are rushing to secure safety by liquidating assets into cash. With the fear index hovering near single-digit levels, analysts anticipate a prolonged battle to confirm a market bottom rather than a swift short-term rebound.
Disclaimer: This article is for investment reference purposes only and the publisher is not responsible for any investment losses incurred based on its content. The information provided should be interpreted solely for informational purposes.