Cryptocurrency Fear and Greed Index Falls to 10 Points, Bitcoin Declines
The Fear and Greed Index for cryptocurrencies has fallen sharply to 10 points as of Sunday, marking its lowest level since February 2025. This decline indicates a prevailing state of "extreme fear" among market participants.
This significant drop in the index coincides with a severe sell-off in the market, driven by heightened uncertainty surrounding U.S. monetary policy, particularly following pessimistic remarks from several Federal Reserve officials regarding the upcoming December meeting.
According to the "CME FedWatch" tool, there has been a notable shift in investor sentiment, with traders now assigning less than a 50% probability to the Fed lowering interest rates by a quarter point in December. This is a significant decrease from 62.9% earlier this week and 95.5% a month ago, underscoring the extent of changing market expectations.
In light of these negative sentiments, Bitcoin is currently trading below $94,000, effectively erasing all gains made in 2025. This follows a remarkable 157% increase in 2023 and a 120% rise in 2024.
These developments signal a deep uncertainty regarding the future of the cryptocurrency market, as traders remain vigilant about the Fed's decisions and their potential effects on risk appetite for volatile assets.
