Bitcoin’s price remained steady above $87,000, while market sentiment took a hit, with the Crypto Fear and Greed Index dropping to 11 out of 100, indicating a state of extreme fear among investors. As of this moment, bitcoin is priced at $87,696, reflecting an approximate 2% increase, based on market data. Despite the modest rebound, BTC remains ensnared in a volatile consolidation range, currently positioned just 0.2% beneath its seven-day peak of $87,918 and 2% above its weekly trough around $85,575. Yesterday, the bitcoin price plummeted from nearly $90,000 to the mid $85,000s. Trading volume reached around $51 billion, indicating ongoing engagement yet a lack of strong conviction from either market side. Bitcoin’s total market capitalization reached $1.75 trillion, marking a 2% rise, as reported.
The current price movement reflects a significant shift in sentiment, which has now become decidedly bearish. The Fear and Greed Index, a composite indicator that takes into account volatility, volume, social media trends, and momentum, has plunged into its lowest category, a zone historically linked with panic-driven selling and intensified emotional decision-making. The current reading of 11 indicates that the market is entrenched in “extreme fear,” a state often characterized by increased downside anxiety and a strong aversion to risk. Historically, these conditions have frequently aligned with local bottoms, although the timing continues to be uncertain. The index functions on a scale from 0 to 100, with values under 25 signifying extreme fear and those over 75 indicating extreme greed. At current levels, investors seem to be more worried about additional downside risks than the possibility of missing out on potential gains, highlighting the cautious sentiment prevailing in the digital asset markets. Market participants frequently interpret extreme fear as a contrarian indicator, suggesting that pervasive pessimism may lead to advantageous long-term entry opportunities.
The recent drop in Bitcoin’s price below the $90,000 mark took place during a weekend characterized by low liquidity, intensifying volatility as sellers faced minimal buy-side backing. Prices dropped from the low-$92,000 range late last week to weekend lows around $87,000, representing one of the most significant short-term pullbacks since October’s all-time high. The wider cryptocurrency market reflected the downturn seen in bitcoin. Major altcoins have been experiencing significant double-digit monthly losses, as bitcoin dominance rises toward 57%, highlighting a shift towards relative safety in the digital asset landscape. Muted volumes indicate that the downward movement is driven by caution rather than capitulation, as traders are hesitant to invest new capital in anticipation of significant macroeconomic events. Globally, eyes are on Japan, where the Bank of Japan is anticipated to increase interest rates. This action may exert pressure on yen-funded carry trades that have bolstered global risk assets throughout the past year, potentially introducing another challenge for crypto markets.
From a technical standpoint, analysts are keeping a keen eye on the mid-$80,000 range, which is being viewed as near-term support. A sustained break below this zone could pave the way for a deeper retracement toward the low-$80,000s or even lower. On the flip side, maintaining current levels would support the perspective that the bitcoin price is staying within a range instead of slipping into a drawn-out bearish trend. Amidst the prevailing pessimism, the long-term outlook holds steady for numerous investors, especially with the ongoing growth of institutional involvement via spot bitcoin ETFs and an increase in regulatory clarity. Currently, bitcoin’s price movement illustrates a market in a state of tension, balancing structural optimism against short-term anxiety—this precarious equilibrium has led to one of the most pessimistic sentiment readings observed this year. In a notable development, asset manager Bitwise has unveiled a report asserting that bitcoin is on the verge of diverging from its traditional four-year market cycle. The report predicts that bitcoin will reach new all-time highs in 2026, while also becoming less volatile and exhibiting reduced correlation with equities.