Bitcoin Crashes Below $104K as Fear Sweeps Through Crypto Markets
Bitcoin’s price has once again reminded everyone just how quickly the crypto world can shift from confidence to panic. On Monday, Bitcoin dropped sharply below the $104,000 mark, hitting a 24-hour low of around $103,938 after trading above $109,000 earlier in the day. That quick slide sent a shock through the markets, pushing investor sentiment into “Extreme Fear” territory — levels not seen in months.
According to the popular Crypto Fear & Greed Index, the market mood fell to a score of just 21 out of 100 on Tuesday. That’s a dramatic shift, considering the same index hovered near “Greed” levels not long ago. For context, the last time fear hit this extreme was back in April, when the index dropped to 18 following global tariff tensions introduced by U.S. President Donald Trump. Since early October, the gauge has been swinging wildly between calm and alarm, reflecting how unsettled traders have become after Bitcoin’s October 6 peak above $126,000.
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Analysts say several factors are at play behind this sudden chill. Institutional investors, who were once seen as stabilizers in the market, appear to be pulling back. Reports indicate that Bitcoin-linked exchange-traded funds saw net outflows of nearly $800 million just last week. Even more concerning, institutional buying has fallen below the pace of newly mined Bitcoin for the first time in seven months — a signal that demand is weakening. Without those steady inflows, price support becomes fragile, and that fragility showed clearly in Monday’s volatile trading.
Bitcoin did manage to recover slightly, moving back above $104,100, but the sharp intraday swing left traders uneasy. Some pointed to declining activity on exchanges and wallets, suggesting that traders are stepping back. Others pointed fingers at the U.S. Federal Reserve. The Fed’s latest decision — a second interest rate cut this year — came with a warning that no more cuts may be coming in 2025. That hint of tightening ahead caught investors off guard, sparking re-pricing across both stock and crypto markets.
Technically, this drop pushed the Fear & Greed Index back into the “Extreme Fear” zone, echoing moves seen in October when Bitcoin slipped from $110,000 to below $108,000. It’s a reminder of how quickly emotions can swing in crypto — from greed to terror in just days.
Looking ahead, traders are keeping an eye on ETF flows, on-chain activity, and signals from U.S. policymakers. If institutional inflows pick up again, the market could find some stability. But if outflows continue, pressure on Bitcoin may deepen further. Still, optimists note that November has historically been a strong month for Bitcoin, with average gains of over 40% in previous years. Whether history repeats itself this time remains to be seen — but for now, the mood has clearly shifted from excitement to anxiety.
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