Bitcoin Fear Index Plunges Amid Market Volatility

The Bitcoin Fear & Greed Index has plummeted to "extreme fear," scoring 25 out of 100.

This drop followed Bitcoin’s intraday low of $58,134 on Monday on Bitstamp. CoinGlass data reveals that over $123 million in long positions were liquidated.

Last Monday, Bitcoin experienced a significant crash, falling to $49,557 on Bitstamp, influenced by global stock market contagion. However, Bitcoin quickly rebounded along with global stocks, reclaiming the $60,000 level by Thursday. This marked Bitcoin’s most substantial rally since February 2022.

Institutional investors played a key role in the recovery, with BlackRock’s Bitcoin ETF remaining stable despite the market downturn. Nonetheless, Bitcoin bulls faced challenges in sustaining momentum, with the cryptocurrency failing to stay above $60,000.

JPMorgan analysts recently warned of a lack of bullish catalysts for Bitcoin, highlighting the vulnerability of equities as a concern for crypto.

At the time of writing, S&P 500 and Nasdaq futures are flat, suggesting Bitcoin’s bearish trend is not directly tied to the stock market. Additionally, Bitcoin has formed its first death cross of 2024, which might indicate a bearish reversal, though this is often considered a lagging indicator based on historical data.