Bitcoin Sentiment Hits “Extreme Fear” as Prices Revisit $60,000 Support
Investor anxiety is rising in the cryptocurrency market. In the past week, the Crypto Fear & Greed Index dropped...
Quick overview
- Investor anxiety in the cryptocurrency market is rising, with the Crypto Fear & Greed Index dropping to extreme fear levels between 5 and 11 out of 100.
- Bitcoin has fallen to around $60,000, its lowest price since late 2024, prompting a significant increase in searches for 'crypto capitulation.'
- On-chain data indicates healthy deleveraging, with over $15 billion in leveraged positions cleared, suggesting potential long-term accumulation.
- Ethereum and altcoins are underperforming as Bitcoin dominates attention, leaving uncertainty about whether $60,000 will serve as a meaningful market bottom.
Investor anxiety is rising in the cryptocurrency market. In the past week, the Crypto Fear & Greed Index dropped to between 5 and 11 out of 100. Such “Extreme Fear” is uncommon except during major downturns, showing widespread unease among digital asset holders.
Bitcoin (BTC) fell to about $60,000, its lowest price since late 2024, wiping out gains from early 2025. This drop led to a surge in “crypto capitulation” searches, up more than 400% on Google Trends, as retail investors search for signs of a market bottom.
Retail Investors Search for the Market Bottom
Recent data from analytics firm Santiment shows that retail traders are closely watching market sentiment. Rather than just reacting to price changes, many are waiting to see if most participants have “quit” before re-entering the market.
Analyst Caleb Franzen recently pointed out that although capitulation is the main theme this week, bear markets often have several “shake-out” events before a lasting bottom forms. CryptoQuant supports this cautious view, noting that Bitcoin is now trading almost 50% below its October 2025 all-time high of about $126,000.
Key Indicators to Watch:
- Fear & Greed Index: Consistent readings below 10 typically signal peak panic.
- Support Levels: Bitcoin’s ability to defend the $60,000 psychological barrier.
- Search Trends: A continued spike in “capitulation” and “market bottom” queries.
- Funding Rates: Sustained negative rates in the derivatives market.
On-Chain Data Shows Positive Divergence
Although fear is high, on-chain data now shows signs of healthy deleveraging. Over $15 billion in leveraged positions have been cleared recently, which has reduced the excess speculation that caused earlier volatility.
The MVRV (Market Value to Realized Value) ratio shows that holder profits are at a three-year low, a situation that has often marked long-term accumulation periods in the past.
Also, a positive Coinbase Premium suggests that even though global sentiment is still uncertain, US institutional and retail buyers might be starting to buy at these lower prices.
Analyst Insight: “Every single metric is telling you that Bitcoin has never been more undervalued on a relative basis,” says analyst Ran Neuner.
Ethereum and Altcoins Underperform Amid Bitcoin Dominance
While Bitcoin is in focus, Ethereum (ETH) has received little attention on social media, even though it is trading below $2,000. In the past, when secondary assets are overlooked during times of extreme fear, it has sometimes led to a broad recovery.
Right now, the market is cautious. It is still unclear if $60,000 will hold as a “meaningful bottom” or if prices will drop further toward the $55,000 accumulation zone.
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