Over $400 million in crypto futures were liquidated in 24 hours as Bitcoin dropped to $68,000, pushing the Fear and Greed Index to 8, near levels last seen during the FTX collapse.
The crypto market was hit by a sharp sell-off over the weekend, with more than $400 million in futures liquidations as Bitcoin briefly dipped below $68,000 and the Fear and Greed Index fell to 8, near levels last seen during the FTX collapse in November 2022.
Bitcoin dropped from roughly $71,000 to a low near $68,000 on Sunday, March 22, after U.S. President Donald Trump threatened to target Iran's power plants unless Tehran reopened the Strait of Hormuz within 48 hours. The escalation sent shockwaves through risk markets, triggering more than $400 million in crypto futures liquidations according to CoinDesk, with the vast majority hitting long positions.
The total crypto market cap fell to approximately $2.22 trillion, shedding around $100 billion in value over 24 hours according to The Block. Bitcoin rebounded slightly to the $70,500 range by Monday morning, but the damage to sentiment was already done.
The Crypto Fear and Greed Index has now fallen to 8, representing extreme fear and approaching the reading recorded during the FTX implosion. According to Spoted Crypto, the index has remained in extreme fear territory for 46 consecutive days, the longest streak since late 2022. The extended period of fear reflects compounding pressures: the Iran-U.S. conflict that began on February 28, oil prices up over 60% since January, and the Federal Reserve's decision to hold rates at 3.5%-3.75% with no cuts in sight.
This level of sustained fear is historically rare. The previous all-time low on this index was 5, recorded on February 6, 2026, lower than both the Terra/Luna collapse and the COVID crash.
Traders are watching the $67,600 support level closely. A break below could trigger another wave of liquidations, while a sustained move above $71,000 would signal short-term stabilization. The geopolitical situation remains the primary driver, with any de-escalation in Iran-U.S. tensions likely to produce a relief rally. Historically, buying Bitcoin when the Fear and Greed Index drops below 15 has yielded a median 90-day return of +38.4%, though prolonged fear periods can bring further drawdowns before recovery.
The crypto market is navigating one of its most prolonged fear periods in history. While extreme fear has historically preceded strong recoveries, the current geopolitical backdrop adds uncertainty that previous cycles did not face. This is a developing situation.
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.
