The bitcoin fear index has fallen to its lowest level in three years as prices slide below key thresholds and derivatives traders face mounting liquidations.
Why has the crypto fear index dropped to 10?
The global crypto market has moved deeper into a risk-off mode this week, with Bitcoin trading below the crucial $100,000 mark for a third straight day. According to CryptoQuant analyst JA Maartun, the industry’s widely watched crypto Fear & Greed Index has fallen to 10, signaling Extreme Fear.
This is the lowest reading since July 2022, underscoring the degree of anxiety now gripping digital asset investors. Moreover, the latest slide comes after months of strong gains, increasing concerns that a more prolonged correction could be underway.
How deep is Bitcoin’s latest price dip?
Nerves have intensified as Bitcoin extends its mid-November decline. The asset once again dropped below the psychological $100,000 barrier on November 13, 2025, and today marks the third consecutive session it has stayed under this key level. That said, spot volumes remain relatively resilient compared with previous capitulation phases.
At press time, Ethereum was changing hands near $95,560, down 0.51% over the past 24 hours and almost 10% over the week. The pullback first gathered pace last month and spilled into November, with the price briefly touching $92,900 over the weekend as sellers gained the upper hand.
The weakness has not been limited to the market leader. Over the past week, Ethereum has shed more than 11% to roughly $3,188, Solana has logged a steeper 15% decline to $141.21, and XRP has fallen 9.14% to $2.26. Consequently, traders are monitoring broader altcoin weekly losses as a gauge of risk sentiment.
What do the latest crypto market liquidations show?
Heightened volatility has triggered a wave of forced unwinds across derivatives venues. Data from CoinGlass liquidation dashboards indicates that traders suffered $616.94 million in liquidations over the past 24 hours. Long bets bore the brunt, with $397.17 million wiped out, while short positions accounted for $219.77 million.
The largest single hit came from a $30.60 million liquidation on Hyperliquid linked to the BTCUSD pair. However, positioning remains elevated compared with historical norms, suggesting more pressure could follow if prices lurch lower. Many leveraged traders now face tough choices on whether to de-risk or wait for a volatility spike to fade.
Is this the start of a new bear market?
Despite intensifying selling and widespread derivatives forced liquidations, CryptoQuant chief executive Ki Young Ju argues that the cycle has not definitively flipped into a bear market. In his view, ongoing capital inflows still provide a crucial backstop for the network, even as short-term traders reassess risk.
Earlier this month, Ju pointed out on X (formerly Twitter) that Bitcoin’s realized capitalization climbed to $1.1 trillion, its highest level ever. This metric, which values each coin at the price of its last on-chain move, suggests persistent demand and supports a constructive longer-term outlook despite the current bitcoin price dip.
Ju nevertheless acknowledged that some early large holders have been locking in profits in recent weeks. He believes selling pressure could ease if these seasoned investors slow their distribution and global macroeconomic sentiment shows signs of stabilizing, especially around interest rate expectations and liquidity conditions.
What could shift sentiment from extreme fear?
The current bout of extreme crypto fear and greed imbalance reflects both macro uncertainty and stretched positioning after a strong year for digital assets. However, sentiment gauges such as the bitcoin fear index can reverse quickly if prices base out and volatility retreats, particularly around widely watched levels like $100,000.
A stabilization of Bitcoin above recent lows, coupled with easing outflows from major exchange and fund vehicles, could help restore confidence. For now, traders will closely watch derivatives order books, on-chain flows, and altcoin performance for early clues that the worst of the correction has passed.
In summary, the slide in the bitcoin fear index to 10, the sharp repricing of major coins, and almost $617 million in market-wide liquidations paint a picture of a market under stress but not yet definitively broken.
Source: https://en.cryptonomist.ch/2025/11/17/bitcoin-fear-index-dive/
