Cryptocurrency Market Drowns in Extreme Fear, Worse Than Post-FTX Levels

5 months ago 26

The cryptocurrency marketplace is ending the period of February connected a bloody note. Almost each assets successful the manufacture mislaid large gains acquired during the archetypal period of 2025. The planetary cryptocurrency marketplace capitalization recorded a monolithic downfall and is presently astatine $2.87 trillion. The world’s largest cryptocurrency, Bitcoin (BTC) took the biggest deed arsenic it dipped to a debased of $82,131.90 each the mode from its highest of $109,114.88, achieved astir a period ago. Amidst this, the assemblage was nether “extreme fear” astatine this time, according to the Crypto Fear and Greed Index.

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Looking Into The Current marketplace Sentiment

According to the caller data, the Crypto Fear & Greed Index fell farther into “Extreme Fear” connected February 27, with a people of 10. Compared to erstwhile the now-defunct cryptocurrency speech FTX crashed, this is lower. To beryllium precise, it’s astatine its lowest constituent since June 2022. This was erstwhile cryptocurrency hedge money Three Arrows Capital (3AC) began to decline. That was besides conscionable a period aft Terraform Labs’ Terra (LUNC) and TerraClassicUSD (USTC) coins, arsenic good arsenic cryptocurrency lender Celsius crashed.

This driblet came arsenic a astonishment to the community. It should beryllium noted that the scale was successful the “Neutral” class until February 25. Following Bitcoin’s plunge beneath $90,000, the scale dropped to “Fear.”

Several person been blaming macorecominc factors for this drop. After US President Donald Trump declared that his projected 25% tariffs connected Canada and Mexico “are going guardant connected time, connected schedule,” Bitcoin fell beneath $90,000 for the archetypal clip since November. Trump said that helium volition besides beryllium slapping a 25% taxation connected the European Union during a furniture gathering connected February 26.

Also Read: Forget the BTC Crash: Here’s What Went ‘Right’ for Crypto successful 2025

How Is The Bitcoin Market Faring?

At the clip of writing, the king coin was trading astatine a debased of $86,189.15. This comes aft a 2.26% driblet implicit the past 24 hours. It should beryllium noted that BTC plunged to a debased of $82,131.90 earlier today. The cryptocurrency is presently 20.78% beneath its all-time precocious of $109,114.88.