Crypto Fear Index Reaches Historical Low of 11

Market Impact and Analysis

Key contributors like Alternative.me and MarsBit help aggregate data, yet neither CMC nor its founders have commented. The index factors in volatility, trading volume, and other criteria to gauge fear.

Impacted areas include Bitcoin and Ethereum, with BTC dipping below $90,000 and ETH witnessing a 41% decrease. MicroStrategy’s stock also faced significant contractions tied to Bitcoin exposure.

Historically low anxiety parallels 2018’s crypto winter, where sentiment akin to current levels prompted aggressive asset sell-offs. Analysts view these patterns cautiously, noting 2018’s prolonged struggles.

Michael Hartnett of Bank of America said, “Stretched valuations and ‘animal spirits’ driven by expectations of Federal Reserve rate cuts could lead to a capitulation scenario.”

Despite the record low, no immediate institutional responses or funding changes appear directed by the latest metrics. Discourse among analysts suggests potential for a market bottom, weighed against macroeconomic factors.

On-chain data, although not directly sourced here, validate market declines with increased liquidations. Bitcoin nearing $80k as market experiences $1.7B in liquidations.