The Crypto Fear & Greed Index fell to “Extreme Fear” levels on Tuesday, according to data from CoinMarketCap, after a sharp pullback across major digital assets in the last 24 hours. Market sentiment cooled rapidly as traders reassessed risk exposure amid persistent volatility across global markets.
The shift in sentiment follows over $1.3B in crypto liquidations and cautious comments from U.S. Federal Reserve officials regarding interest-rate cuts. Bitcoin briefly dipped below $104,500 while Ethereum traded near $3,500. Despite the downturn, long-term fundamentals remain supported by growing institutional inflows and continued development in blockchain infrastructure, including recent Layer-2 upgrades and rising adoption of tokenized real-world assets.
Analysts indicate this reset could flush excess leverage, potentially setting the stage for a healthier rebound once macro uncertainty stabilizes. Traders are now watching the upcoming December Fed meeting and on-chain flows for signals of renewed risk appetite, along with ETF inflows and stablecoin supply growth as early trend indicators.
Source: https://coinmarketcap.com/charts/fear-and-greed-index/
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