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

• The CoinMarketCap Crypto Fear & Greed Index has dropped to 20, marking its lowest reading in 200 days.
• This “Extreme Fear” level has only been reached twice before since the index’s inception in 2023.
• The sentiment shift follows a 21% Bitcoin price decline and a reported $600 million sell-off by large holders.

On November 5, CoinMarketCap issued a post on X stating that the Crypto Fear & Greed Index has fallen to 20 , 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.

Historical Precedent for ‘Extreme Fear’

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. 

Related: China Suspends 24% US Tariff; Bitcoin Immediately Reclaims $100,000

Drivers of the Sentiment Collapse

As such, the collapse in sentiment correlates with Bitcoin’s 21% price decline, and the drop likely due to a large number of forced closures of leveraged trades 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.

How important is the Fear & Greed Index?

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.

Related: BTC Price Battles to Stay Above $100K While Exchange Inflows Jump