Bitcoin price approaches potential bottom amid extreme market fear

Bitcoin’s price hovers below $83,000 amid extreme market fear, with analysts suggesting a potential near-term floor. Despite a recent dip, some believe this could signal a buying opportunity, while macroeconomic uncertainties and proposed tariffs contribute to the market’s decline. The S&P 500 has also seen a notable drop, raising concerns about Bitcoin’s future trajectory.

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Bitcoin struggles for stability as ETF outflows reach record levels

Bitcoin has faced significant pressure, dropping 12.48% from February 24 to 27, with spot ETFs experiencing outflows totaling $3.4 billion for the month. The Crypto Fear & Greed Index has reached an extreme fear level of 10, suggesting potential buying opportunities, though analysts advise caution as key indicators remain above historical reversal levels.

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Crypto Fear Index Hits Lowest Level Since Major Market Collapses

The Crypto Fear & Greed Index has plunged to a score of 10, indicating “Extreme Fear,” as Bitcoin fell below $85,000, reminiscent of the market turmoil seen during the collapses of Celsius, Terra, and Three Arrows Capital in 2022. Analysts suggest that this sentiment may present a buying opportunity, despite ongoing macroeconomic uncertainties and rising global liquidity levels. March is anticipated to be a pivotal month for the cryptocurrency market.

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