Crypto Fear & Greed Index Hits 10, Signaling Extreme Fear Not Seen in Over Eight Months
Bitcoin is currently trading at $95,778, down 1.5% daily and 6.3% weekly, despite the recent end of the U.S. government shutdown. Spot Bitcoin ETFs experienced $866 million in outflows on Thursday, marking the second-worst day on record and contributing to a 20% monthly decline as Bitcoin enters bear market territory.
Discover why the Crypto Fear & Greed Index dropped to 10 in 2025 as Bitcoin falls below $95K amid ongoing uncertainty. Analysts are beginning to see early signs of recovery—explore key insights to make informed crypto decisions today.
What is the Crypto Fear & Greed Index and Why Has It Reached Extreme Fear Levels in 2025?
The Crypto Fear & Greed Index is a sentiment indicator that measures market emotions on a scale from 0 to 100. Lower scores represent fear, while higher scores indicate greed. In late November 2025, the index plummeted to 10—the lowest level since February 27—primarily driven by Bitcoin’s sharp decline below $95,000 and persistent macroeconomic pressures.
This extreme fear level reflects widespread investor caution. However, historical patterns show that such lows often precede market rebounds.
How Has Bitcoin’s Price Performance Influenced the Current Crypto Fear & Greed Index?
Bitcoin’s price has been a key driver behind the Crypto Fear & Greed Index drop. As of publication, BTC trades at $95,778, with a 1.5% daily loss and over 6.3% weekly decline. Despite the end of the U.S. government shutdown—the longest in history at 43 days—Bitcoin failed to rally, dropping more than 20% within a month and officially entering bear market territory, according to Dave Rosenberg of Rosenberg Research.
Large ETF redemptions, including $1.14 billion in single-day outflows earlier in the year, have exacerbated the downturn, pushing sentiment to new lows.
Andre Dragosch, Head of Research at Bitwise, notes that while sentiment remains bearish, it is less severe compared to past corrections. Bitwise’s Cryptoasset Sentiment Index shows positive divergence despite falling prices, indicating that sellers may be exhausted—a potential sign of an impending bottom.
Sven Henrich of NorthmanTrader points to a falling wedge pattern on BTC charts, suggesting bullish potential driven by positive divergence.
Frequently Asked Questions
What caused the recent drop in the Crypto Fear & Greed Index to 10?
The index’s fall to an extreme fear score of 10 stems from Bitcoin’s plunge below $95,000, ongoing macroeconomic uncertainty, and heavy ETF outflows totaling $866 million on Thursday—the second-worst day recorded. Additionally, online chatter and social dominance for Bitcoin surged above 40%, with positive-to-negative comment ratios hitting 30-day lows, according to Santiment data, which has fueled the bearish mood.
Will the end of the U.S. government shutdown boost Bitcoin prices?
The resolution of the 43-day shutdown has not immediately lifted Bitcoin prices. Market volatility persists amid uncertainty surrounding Federal Reserve rate cuts. Although equities have stabilized somewhat, the CME FedWatch Tool indicates a 44.4% chance of a December rate cut. Bitcoin’s correlation with risk assets remains, and analysts like Juan Perez of Monex USA note that BTC has yet to fully decouple as a hedge, potentially delaying its recovery.
Key Takeaways
- Extreme Fear Signals Opportunity: The Crypto Fear & Greed Index hitting 10 often marks market bottoms. For example, in February 2025, BTC dropped to $84,000 from $102,000 before rebounding.
- Positive Divergences Emerging: Despite bearish headlines, indicators such as Bitwise’s sentiment index and chart patterns show less exhaustion than in prior corrections, signaling seller fatigue and potential upside.
- Monitor ETF Flows and Fed Rate Decisions: Recent inflows of $1.17 billion over three days contrast with earlier outflows. Pay attention to Federal Reserve policies, as a December rate cut could support Bitcoin’s recovery as a risk asset.
Conclusion
The Crypto Fear & Greed Index reaching 10 underscores the intense bearish pressure on Bitcoin amid 2025’s macroeconomic turbulence and the aftermath of the government shutdown. Nevertheless, analysts from Bitwise and Santiment highlight positive divergences that could shorten the downturn.
As ETF flows stabilize and the probability of a December rate cut stands at 44.4%, investors should stay vigilant for signs of reversal. For the latest crypto insights, continue monitoring key sentiment tools to navigate this volatile landscape effectively.
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