Crypto market sentiment slumped to its lowest level since mid-2022 after Bitcoin plunged to around $60,000, marking a renewed wave of panic across digital asset markets.
The Crypto Fear & Greed Index fell to 9 out of 100, signalling extreme fear as Bitcoin dropped by double digits in a single day and erased gains built up over the past sixteen months.
Bitcoin slid to its lowest level since October 2024 on Coinbase, briefly touching just over $60,000 before recovering to around $64,000 after a 13% daily fall.
“Investors are increasingly reassessing Bitcoin's failure to function as a safe haven compared to gold,”
Said Jeff Ko, chief analyst at CoinEx Research.
Bitcoin has now fallen below its 200-week exponential moving average, a level historically breached only during deep bear markets, and is roughly 50% below its October all-time high.
More than 588,000 traders were liquidated for $2.7 billion in the past 24 hours, with around 85% of losses coming from leveraged long positions, according to CoinGlass.
Analysts attributed the selloff to a slump in US technology stocks and growing caution over interest rate cuts, echoing conditions last seen during the 2022 market crash triggered by the collapse of the Terra blockchain.
At the time of reporting, Bitcoin price was $64,633.36.