Bitcoin drops to its lowest since November 2024 as the Crypto Fear and Greed Index plunges to 14, signaling extreme fear.
Bitcoin has crashed below $73,000 for the first time in over 15 months, while the Crypto Fear and Greed Index has plummeted to 14, its lowest reading since late 2025.
Bitcoin briefly dipped below $73,000 on Tuesday, marking its lowest price since November 2024. The flagship cryptocurrency has fallen approximately 16% year-to-date, with the total crypto market capitalization declining to $2.66 trillion. Over the past week alone, more than $200 billion has been wiped from Bitcoin's market value.
The selloff has triggered massive liquidations, with over $2 billion in long and short positions being forcibly closed since last Thursday. US Bitcoin spot ETFs recorded $272 million in outflows on Tuesday, adding to the selling pressure.
The Crypto Fear and Greed Index has dropped to 14, indicating "extreme fear" among investors. This is the lowest level since late November 2025 and suggests market participants are making emotionally-driven decisions. Several factors are driving the downturn: expectations of a more hawkish Federal Reserve following Kevin Warsh's nomination to lead the central bank, ongoing geopolitical concerns, and delays in critical U.S. economic data due to a partial government shutdown.
However, some analysts see a silver lining. Compass Point suggests the bear market may be in its "final innings," with strong long-term holder support forming around $60,000 to $65,000.
Key levels to monitor include the $73,000 support zone and the potential floor around $60,000-$68,000 identified by analysts. Any clarity on Federal Reserve policy direction or resolution of the government shutdown could serve as near-term catalysts. Institutional buying activity, particularly from entities like MicroStrategy, may provide support at current levels.
While the current market conditions appear severe, historical patterns suggest periods of extreme fear often precede significant reversals. Investors should remain cautious but vigilant for potential buying opportunities as the market seeks a bottom.
Wall Street giant Citigroup projects Bitcoin could reach $143,000 within 12 months, citing ETF demand and regulatory tailwinds as key catalysts.
The largest US bank is assessing spot and derivatives trading services as regulatory clarity enables traditional finance to deepen crypto involvement.
Senator Boozman postpones Digital Asset Market Clarity Act from January 15 to final week of January to secure bipartisan support.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
