Crypto Fear and Greed Index Drops to 10, Bitcoin Sees Significant Losses
The Crypto Fear and Greed Index has dropped sharply to 10 points as of Sunday, marking its lowest level since February 2025. This decline signals that "extreme fear prevails among traders."
This significant drop in the index aligns with a wave of aggressive selling that has impacted the market in recent days, driven by "increasing uncertainty regarding monetary policies in the United States, particularly following pessimistic remarks from several Federal Reserve officials regarding the December meeting."
Data from the "CME FedWatch" tool shows a notable shift in investor expectations, with "traders currently pricing in less than a 50% chance that the Federal Reserve will cut interest rates by a quarter point in December, down from 62.9% earlier this week and 95.5% just a month ago, highlighting the magnitude of the change in market expectations."
In this context, negative sentiment has directly impacted price performance, as "Bitcoin is now trading below $94,000, erasing all gains made in 2025, following a remarkable increase of 157% in 2023 and 120% in 2024."
These developments reflect a state of deep uncertainty looming over future trends in the cryptocurrency market, amid heightened anticipation of the Federal Reserve's decisions and their impact on risk appetite for high-volatility assets.
