The Crypto Fear & Greed Index has experienced a significant decline, dropping 19 points to a score of 50. This marks its lowest level since October 14, shifting market sentiment into the “Neutral” zone after a prolonged period of “Extreme Greed” and “Greed.”

Recent developments have influenced this change, particularly the price of Bitcoin falling below $92,000. This decline is linked to the U.S. Department of Justice being allowed to sell $6.5 billion worth of Bitcoin seized from Silk Road, although no sales have occurred yet. Analysts suggest that anticipated tighter monetary policy from the U.S. Federal Reserve in 2025, along with rising treasury yields and a stronger U.S. dollar, have impacted Bitcoin’s ability to maintain a value above $100,000.

• U.S. spot Bitcoin exchange-traded funds have seen their second-largest outflow, nearly $570 million.
• This outflow indicates a potential for further decline in Bitcoin’s value.

The Crypto Fear & Greed Index is influenced by various factors, including market volatility, trading volume, and social media sentiment, reflecting the current state of the cryptocurrency market.

📎 Related coverage from: cointelegraph.com