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Bitcoin Updates Today: Is Crypto’s Intense Fear Signaling a Market Bottom or Just a Misleading Decline?

Bitcoin Updates Today: Is Crypto’s Intense Fear Signaling a Market Bottom or Just a Misleading Decline?

Bitget-RWA2025/11/23 01:22
By:Bitget-RWA

- Crypto Fear & Greed Index fell to 24, with Bitcoin consolidating between $103,000-$115,000 amid prolonged market anxiety. - Extended fear periods historically precede market bottoms, but traders warn the index often lags and misfires in volatile conditions. - Coinbase aims to stabilize markets with 24/7 altcoin futures, yet regulatory clarity and persistent ETF outflows remain critical factors.

The crypto Fear & Greed Index has dropped to 24, its lowest point in a week, highlighting ongoing market unease as

(BTC) trades within the $103,000 to $115,000 range. This extended stretch of fear, the longest since March 2025, has historically come before local market bottoms. On-chain metrics reveal increased volatility, indicating the market may continue to consolidate before making a decisive move . The index, which gauges sentiment from 0 to 100, captures the psychological swings that drive investors to act irrationally during sharp declines or exuberant rallies.

Recent developments have intensified these concerns. On November 21, 2025, the crypto market saw $1.5 trillion wiped out, with Bitcoin plunging to $87,000 amid a wave of unexplained liquidations

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Bitcoin Updates Today: Is Crypto’s Intense Fear Signaling a Market Bottom or Just a Misleading Decline? image 0
This sharp decline, which occurred just before the release of the U.S. jobs report in December, underscored how market sentiment now outweighs macroeconomic factors in influencing price movements. Many short-term Bitcoin investors remain at a loss, mirroring trends from earlier cycles, though that a temporary rally does not necessarily signal a new record high. At the same time, (ETH) despite ETF inflows, with a 19.4% decline over the past two weeks reflecting mounting selling pressure.

The current deep pessimism reflected by the Fear & Greed Index has drawn parallels to previous market bottoms, such as the March 2025 low of 13, which

during uncertainty over Trump-era tariffs. Still, traders advise against using the index as a sole indicator, as it often trails price action and may give false signals in turbulent markets. For example, extremely high readings in April 2021 and March 2024 came before significant tops, while similar lows in July 2021 and December 2022 did not immediately lead to reversals .

Amid these challenges, Coinbase is seeking to establish itself as a source of stability. The exchange

for leading altcoins, including (SHIB), (DOGE), and (ADA), starting December 5. This new offering, part of its CFTC-regulated derivatives lineup, is designed to attract institutional clients looking for regulated alternatives to offshore exchanges. contracts, which have five-year expirations, are modeled after crypto-native perpetual swaps but comply with regulatory standards. This initiative follows Coinbase’s $2.9 billion purchase of Deribit and comes as decentralized platforms like Hyperliquid gain popularity .

Clearer regulations and innovative products could help trigger a turnaround. Historically, extended periods of fear have aligned with seller fatigue, suggesting the current sideways movement might end with a recovery. However, with the market still shaken from November’s crash and ongoing outflows from altcoin ETFs, investors are urged to remain cautious

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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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