Bitcoin has seen bigger crashes during the current cycle, but investor sentiment is hovering near lows not seen since March.
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Crypto investor sentiment is in freefall during the latest market dip as market analysts and traders search for a singular reason for falling asset prices and Bitcoin’s descent below $100,000.
The crypto “Fear and Greed” index, a metric tracking investor sentiment, is at 22, signaling investor caution and hovering just above “extreme fear” territory — its , according to
“This dip has been the smallest of this cycle, 25% vs 31% and 32%, but it feels so, so much worse. Sentiment cooked,” market analyst Nic Puckrin .
Over 70% of Polymarket traders now Bitcoin to dip below $90,000, a trend that market analysts have attributed to older . Long-term Bitcoin holders on the market in October.
Market analysts, investors and traders are debating whether the latest dip signals the start of the next prolonged or if cryptocurrencies will form new all-time highs in 2026 if interest rates continue to drop and liquidity flows into assets.
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Bitcoin , a critical support level, several times in November and continued to move lower on Friday, trading well below its 365-day average.
Senior Bloomberg exchange-traded fund (ETF) analyst Eric Balchunas that heavy outflows from BTC ETFs were the primary cause of the continued price decline and said that ETF investors held strong, despite a 20% price shock.
ETFs saw about $1 billion in outflows over the last month, despite October’s historic market crash, which saw about $19 billion in leveraged bets wiped away from the market within 24 hours — the worst crypto liquidation event in history, Balchunas .
Alex Thorn, head of firmwide research at investment firm Galaxy, from $180,000 to $120,000 due to several factors, including investor rotation into competing narratives like gold and AI.
Thorn also said that leveraged liquidations in crypto derivatives markets are also one of the main culprits behind falling asset prices.
Cathie Wood, the founder of investment firm ARK Invest, said that as they become the store of value for residents in emerging economies.
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