The Crypto Fear & Greed Index — a measure of Bitcoin and the broader crypto market sentiment — fell 19 points in a day to its lowest score since Oct. 14.
The plunge to a score of 50 out of 100 is one of the index’s biggest daily drops over the last few years, causing market sentiment to plunge into the “Neutral” zone after three months in the “Extreme Greed” and “Greed” zones.
Change in Crypto Fear & Greed Index score over the last day. Source: Alternative.me
It comes as Bitcoin’s (BTC) price fell below $92,000 on Jan. 9, after a report that the US Department of Justice had been cleared to sell $6.5 billion worth of the 198,000 Bitcoin seized from Silk Road, though none has been sold so far.
Analysts have also attributed the fall to expectations that the US Federal Reserve may tighten monetary policy in 2025, which would impact Bitcoin and the broader crypto market.
Rising Treasury yields and a strengthening US dollar have also helped keep Bitcoin mostly below $100,000 recently.
US spot Bitcoin exchange-traded funds saw their second-largest outflow of nearly $570 million on Jan. 8, signaling that Bitcoin may retrace even further, 10x Research’s founder Markus Thielen said on Jan. 5.
Related: Bitcoin ETFs scooped up almost 3X more BTC than produced in December
The Crypto Fear & Greed Index produces a score based on market volatility (25%), trading volume (25%), social media sentiment (15%), Bitcoin’s dominance (10%) and trends (10%) to reach an overall score.
The index score reached a 2024 high of 94 out of 100 on Nov. 22, as the market was responding positively to Republican Donald Trump’s presidential election victory and speculation about a strategic US Bitcoin reserve in 2025.
Change in Crypto Fear & Greed Index score over the last 12 months. Source: Alternative.me
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