Bitcoin dropped below $67,000 as geopolitical fears pushed the Crypto Fear & Greed Index to 9, matching levels last seen during the FTX collapse. Good Friday closures leave markets exposed.
The cryptocurrency market plunged into extreme fear on April 3 as escalating U.S.-Iran tensions triggered a broad selloff, pushing the Fear & Greed Index to just 9, one of its lowest readings since the index was created.
Bitcoin fell below $67,000 after President Trump threatened to strike Iran "extremely hard," rattling risk assets across equities, crypto, and commodities. The total crypto market cap dropped 2.4% to $2.38 trillion over 24 hours, with trading volume at $105.4 billion.
Ethereum suffered a steeper decline, opening at $2,057 on Friday, down 3.8% from Thursday. Bitcoin dominance held steady at 56.2%, indicating altcoins were hit equally hard.
Spot Bitcoin ETFs recorded $173.7 million in net outflows on April 1, led by BlackRock's IBIT ($86.5 million) and Fidelity's FBTC ($78.6 million). This extended a pattern of weak demand, with $296 million in net ETF outflows during the final week of March alone.
The Fear & Greed Index at 9 marks an extremely rare reading. According to historical data, the index has fallen below 10 on fewer than 20 trading days since its inception, nearly all clustered around the March 2020 COVID crash, the May 2021 China mining ban, and the May 2022 Terra/Luna collapse.
The timing compounds the risk. With Good Friday pausing both CME futures trading and ETF creation and redemption, the institutional bid that has increasingly anchored Bitcoin's price will be absent over the weekend. Trading will be limited to spot markets, where selling pressure has been most persistent in recent weeks.
Bitcoin is testing critical support around $66,000-$68,000. If this zone holds, a rebound toward $71,000-$72,000 resistance is possible when institutional markets reopen Monday. However, any escalation in Middle East tensions over the weekend could trigger further selling in thin liquidity conditions.
Historically, Fear & Greed readings below 10 have preceded major accumulation phases within 30-90 days, though past performance does not guarantee future results.
This is a developing situation. Geopolitical risks remain elevated, and the Good Friday holiday leaves crypto markets unusually exposed to weekend volatility. Investors should monitor both the Iran situation and spot market liquidity closely.
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.
All 12 U.S. spot Bitcoin ETFs saw positive inflows on March 2, totaling $458M as BTC rebounds from February lows.
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.
