‘Extreme Fear’ Grips Crypto Market as Bitcoin Whales Sell $600 Million

On November 5, CoinMarketCap issued a post on X stating that the , which is the lowest reading in about 200 days.

The index, which ranges from 0 (Extreme Fear) to 100 (Extreme Greed), has entered the Extreme Fear zone (at or below 20) only twice since its 2023 inception. These instances occurred in March and April of 2025, both of which preceded short-term price lows for Bitcoin.

This is noteworthy because it shows that investors are very fearful and are avoiding risk. However, in the past, when sentiment got this bad, it often bounced back quickly, even if it took longer for prices to fully recover.

Bitcoin’s price has fallen over 21% since its record high in early October, dropping from about $126,000 to below $100,000.

As such, the collapse in sentiment correlates with Bitcoin’s 21% price decline, and the drop likely due to a large number of and ongoing worries about the economy and future regulations, which are hurting risky investments like crypto.

For instance, large holders reportedly offloaded around $600 million worth of Bitcoin during the weekend.

Plus, there has been a fall in retail and institutional engagement lately, which tends to feed more fear. For example, many major altcoins show deeper declines consistent with weakening sentiment.

Some analysts warn that if Bitcoin fails to hold key support (around $100,000), a deeper drop is possible.

With such a low index number, a few things often happen. For starters, with many participants leaning away from risk, opportunities may arise for those willing to buy.

Historically, when the market mood has quickly shifted from fearful back to neutral or greedy, it has sometimes signaled that prices are about to bounce back, although it might not happen right away.

It’s important to note that a reading of 20 doesn’t guarantee an immediate bounce. Liquidity, regulation, institutional flows, and macroeconomic conditions still have to align.

Ultimately, the Fear & Greed Index falling to 20 is likely a sign that crypto investors should view this as a way to prepare, and not to assume an automatic bounce.