Bitcoin Updates: Is the Crypto Market's Intense Fear a Sign to Buy or a Warning of Impending Crash?
- Crypto Fear and Greed Index hit 21 (extreme fear), signaling heightened capitulation risk as BTC/ETH/SOL dropped 3-8% amid $40B+ long-term holder selling. - Derivatives liquidations reached $1.33B (90% longs), while Ether ETFs outperformed Bitcoin ETFs in Q3 2025 despite BlackRock's altcoin ETF absence. - Market divides: Van de Poppe calls sub-$112k BTC a "great entry point," while Schiff dismisses crypto as "decentralized Ponzi scheme." - Fed policy uncertainty and U.S.-China trade deal ambiguity persis
The cryptocurrency sector has entered a phase of "Extreme Fear," with the popular Fear and Greed Index dropping sharply to 21 on November 4, a significant decline from 42 the day before,
Bitcoin (BTC) declined by 3% to $104,500, while
This decline happened alongside growing concerns about the broader economy. Federal Reserve Chair Jerome Powell suggested a possible halt to rate reductions, dampening optimism for risk assets, while leaders at Goldman Sachs and Morgan Stanley cautioned about potential corrections in stock markets, further unsettling crypto traders. The U.S.-China trade agreement, announced on October 30, also failed to trigger a lasting rally, with Bitcoin gaining only 0.26% after the news,
Institutional trends added further complexity. Ether ETFs outshined Bitcoin ETFs in the third quarter of 2025, drawing $9.6 billion in new investments compared to Bitcoin's $8.7 billion,
Opinions among traders are split regarding the future. Some interpret the fear index at 21 as a possible buying signal; "Anything below $112,000 is an excellent entry," argued Michaël van de Poppe in the Yahoo article. In contrast, economist Peter Schiff dismissed cryptocurrencies as a "decentralized Ponzi scheme," criticizing President Trump's advocacy for U.S. crypto dominance. Trump, on the other hand, described the sector as vital for national security, asserting that China aims to lead in an industry he called "crucial for employment and technological progress,"
The market's direction will depend on several upcoming events. The Federal Reserve's December meeting could shape risk sentiment, while the rollout of the U.S.-China trade deal might ease geopolitical pressures. Blockchain data indicates that if Bitcoin stays above $100,000, the market could stabilize, though large holders selling remains a significant risk,
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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