Bitcoin’s price stabilized near $87,000 today, yet the cryptocurrency market is exhibiting clear signs of extreme fear. The Crypto Fear and Greed Index has dropped significantly to 11 out of 100, indicating heightened investor anxiety. Over the past 24 hours, Bitcoin’s price rose approximately 2% to $87,696, just 0.2% below its seven-day high of $87,918. Yesterday, the price had fallen below $90,000 to the mid-$85,000 range. Trading volume for Bitcoin in the last 24 hours was around $51 billion, reflecting ongoing market activity without a definitive trend. Its total market capitalization increased by 2% to $1.75 trillion compared to previous days.
The Fear and Greed Index, which reflects investor sentiment by analyzing market volatility, volume, social media trends, and price movements, currently signals extreme fear—a condition often associated with market lows, though timing remains uncertain. Recent price declines are attributed to lower weekly liquidity and fewer buyers, resulting in increased volatility. The drop from last week’s peak marks the fastest decline since October. Other major cryptocurrencies reflect Bitcoin’s weakness, while Bitcoin’s market dominance has risen to approximately 57%, suggesting investors are shifting toward relatively safer assets.
Globally, the potential interest rate hike by a Japanese bank poses another challenge, as such moves could impact global investment trends and exert downward pressure on crypto markets. Technically, the $85,000 support zone is critical for Bitcoin; falling below this level could trigger further declines, whereas holding above it would indicate market stability. Despite current volatility, long-term investors remain optimistic about Bitcoin’s growing adoption and potential benefits, especially amid increasing institutional investment and clearer regulatory frameworks.
A recent report by Bitwise suggests Bitcoin may break out of its historical four-year market cycle and reach new all-time highs by 2026, with reduced volatility. Currently, Bitcoin trades near $87,706, reflecting a delicate balance between fear and hope in the market.
Source: bitcoinmagazine
