Bitcoin Drops Below $104K, Crypto Fear Index Hits Extreme Levels

Bitcoin's recent decline caused a significant shift in crypto market sentiment, with prices falling to a 24-hour low of $103,938 from over $109,000. This downturn pushed the Crypto Fear & Greed Index to 21, indicating "Extreme Fear," the lowest since April when it hit 18 due to global tariff concerns.

Market Sentiment

The index has fluctuated between calm and alarm following an early October sell-off.
Net outflows from Bitcoin-tied ETFs reached nearly $800 million last week.
Institutional buying fell below newly mined Bitcoin levels for the first time in seven months.

Price Movements and Influencers

Bitcoin briefly recovered above $104,100 but remains volatile.
Reduced exchange and wallet activity, along with Federal Reserve rate cut signals, contributed to market uncertainty.
The Fed's hint at fewer future cuts took investors by surprise, affecting both stock and crypto markets.

Future Considerations

Traders are monitoring ETF flows, on-chain activity, and U.S. policy updates.
Continued outflows could increase pressure on the market, while inflows might stabilize it.
Some analysts highlight November's historical strong performance for Bitcoin, with average gains over 40% in past years.