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Bitcoin News Update: Crypto Market's "Extreme Fear" Index Hits 15—Could This Indicate a Historical Bottom?

Bitcoin News Update: Crypto Market's "Extreme Fear" Index Hits 15—Could This Indicate a Historical Bottom?

Bitget-RWA2025/11/26 01:20
By:Bitget-RWA

- Crypto Fear & Greed Index hits 15 ("extreme fear"), with Bitcoin trading below $90,000 after 30% drawdown from $126,000 peak. - $3.5B ETF outflows in November and $4.6B stablecoin cap contraction highlight liquidity strains, while Kaspa (KAS) and Quant (QNT) see isolated gains. - 10x Research notes historical correlation between index lows (<5) and market bottoms, citing March 2025 $76,000 Bitcoin floor as precedent. - Crypto IPOs face 31% average Q4 decline, with 2026 recovery expected amid macroeconomi

The Crypto Fear & Greed Index has dropped to 15, placing it in the "extreme fear" category and highlighting ongoing investor caution, even as sentiment has shown slight improvement. This index, which gauges market emotions on a scale from 0 to 100, paints a picture of a market where

is struggling to regain strength and altcoins are seeing uneven gains . Experts believe this reading could signal a turning point, though deep-seated anxiety continues .

Bitcoin (BTC-USD) remains below its record highs from October, consolidating around $87,000 after falling 30% from its peak above $126,000. The decline has been worsened by outflows from ETFs, with $3.5 billion pulled from Bitcoin exchange-traded funds in November alone—the largest monthly withdrawal since February

. Funds such as (IBIT) and Grizzly's GBTC have experienced continued redemptions, indicating a pause in institutional buying after October’s rapid surge. Blockchain data also points to worsening liquidity, with stablecoin market capitalization shrinking by $4.6 billion since early November .

Despite Bitcoin’s ongoing struggles, a few altcoins have managed to outperform the broader market.

Bitcoin News Update: Crypto Market's
Kaspa (KAS) jumped 22% in a single day, trading near $0.049, fueled by renewed interest in its proof-of-work model and rapid block times . (ENA) found stability at $0.28 after volatile price swings tied to concerns about its synthetic dollar system, with improved funding conditions helping it recover . (QNT) also rose by 12%, supported by consistent infrastructure demand. Still, these advances are seen as isolated events rather than signs of a broader market rebound .

Historically, such low fear readings have often come before market bottoms, according to 10x Research. Their proprietary index recently hit a record low below 5, with its 21-day moving average at 10%—a level that has frequently marked tactical lows

. "Prices may continue to decline, but the rate of drop should slow, and a short-term bounce is possible," said Markus Thielen, founder of 10x Research. Similar trends were observed in March 2025 during President Donald Trump's tariff announcement, when Bitcoin bottomed near $76,000 before stabilizing .

Bitget CEO Gracy Chen pointed to early signs of improving sentiment, noting the index’s rise to 20 could be an early indicator of renewed optimism

. She also mentioned that expectations for a Federal Reserve rate cut in December—now seen as more than 80% likely—could spark a liquidity-driven rally. However, Bitcoin’s inability to break past $90,000 and limited altcoin liquidity continue to dampen .

Market unease goes beyond price movements. The crypto downturn has affected U.S. initial public offerings (IPOs), with crypto-focused firms like Grayscale Investments and BitGo Holdings facing tougher listing environments. New crypto IPOs this year have seen an average 31% drop in their first quarter, adding to investor caution

. Bankers expect crypto IPO activity to pick up again in 2026, but for now, prospects are limited by economic uncertainty and weak risk appetite .

With the Fear & Greed Index lingering near all-time lows, the market is waiting for new catalysts to break the deadlock. Some experts see this as a buying window, while others warn that institutional caution and challenging macroeconomic conditions—like strict central bank policies—could keep the market in a consolidation phase for longer

. For now, the crypto market remains divided: widespread fear at the macro level, but isolated optimism in select assets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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