Crypto Sentiment Sinks to Lowest Level in 3.5 Years
Investor fear in the crypto market has surged to levels not seen since the Terra Luna collapse in 2022, triggered by a steep macroeconomic-driven selloff. Bitcoin dropped to a 15-month low of $60,255, down 52% from its October 2025 high of $126,080. The Crypto Fear and Greed Index plunged to 9, its lowest in 42 months. Tighter global liquidity, uncertainty around Federal Reserve policy, geopolitical tensions, and a rallying U.S. Dollar Index are intensifying financial stress. Crypto markets remain tightly correlated to equities and sensitive to changes in monetary policy. Open interest in Bitcoin futures fell to its lowest in 15 months, reflecting a withdrawal of speculative capital. Options data indicates traders are aggressively seeking downside protection. The downturn is also driven by concerns over the sustainability of heavy capital expenditures in the tech and AI sectors, fueling the broader risk-off sentiment.
