- Bitcoin drops to $82,256, its lowest level since November 2024, amid continued selling pressure.
- The Crypto Fear & Greed Index falls to 21, indicating extreme fear and potential market bottoming.
- Bitcoin’s decline aligns with broader market turmoil as US equities face heavy selling pressure.
Bitcoin’s recent downturn has extended into its third consecutive day, plunging to price levels last seen on November 11, 2024. As the market grapples with heightened volatility, BTC dipped to $82,256 before a wave of buying pressure emerged. However, on-chain data and market indicators suggest that further downside risks remain before a potential stabilization.
As Bitcoin struggles to find its footing, independent market analyst Scott Melker pointed to a possible technical lifeline. Sharing a price chart, he noted:
“Bullish divergence with oversold RSI STILL very much in play. At the moment, RSI is still making a higher low. We must see a clear ‘elbow up’ on the next candle to confirm. Nothing here yet.”
Despite this potential bullish signal, market sentiment has taken a drastic hit. The Crypto Fear & Greed Index plummeted to 21, marking its lowest reading in over a year and indicating an extreme fear phase. Historically, such low sentiment readings have coincided with major market bottoms, but investors remain cautious amid broader economic and geopolitical uncertainties.
Data from Velo Analytics highlights Bitcoin’s worst three-day performance since 2022. This sharp decline has coincided with an exodus of institutional capital from spot BTC exchange-traded funds (ETFs), with billion-dollar outflows adding to the sell-side pressure. The exodus raises concerns about a weakening institutional appetite, especially following months of record-breaking inflows into Bitcoin ETFs.
Risk-Off Mode as Bitcoin and S&P 500 Drop
The turmoil in crypto markets isn’t occurring in isolation. The broader financial landscape is experiencing turbulence, with US equities facing heavy selling pressure. The S&P 500 took a sharp hit after President Donald Trump announced his administration’s plan to impose a 25% tariff on European Union imports, which has rattled global investors.
Adding to the uncertainty, the Trump administration has reportedly issued a memo to federal agencies outlining guidelines for mass layoffs. These economic pressures have spooked investors, leading to risk-off sentiment across traditional and digital asset markets.
While some analysts see Bitcoin’s steep correction as a potential “generational buying opportunity,” there’s little consensus on whether the worst is over. Price predictions remain wide-ranging, with some traders eyeing a possible bottom between $80,000 and $71,000.
With Bitcoin’s sharp sell-off aligning with macroeconomic instability and fading institutional interest, the next few days could be pivotal in determining whether the leading cryptocurrency finds solid support or risks deeper corrections. For now, traders remain on edge, watching key technical levels and external market forces that could dictate Bitcoin’s next move.
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