Bitcoin plunged over $3,000 in two hours, erasing its recent gains and pushing the Crypto Fear and Greed Index to historic lows. The sharp drop triggered over $450 million in total trader liquidations, predominantly impacting long positions, as the market entered a phase of extreme fear not seen since mid-2022.
Bitcoin experienced a dramatic price decline, shedding more than $3,000 in under two hours. The cryptocurrency fell more than 4% to $64,300, wiping out its gains since the previous Friday.
More than 136,000 traders were liquidated over a 24-hour period, with total liquidations reaching $458 million. Data from CoinGlass shows 92% of these were leveraged long positions.
The Crypto Fear and Greed Index, a market sentiment gauge, fell to 5 out of 100, indicating “extreme fear.” This level has only been recorded three other times since the index launched in 2018.
On-chain analytics provider Glassnode reported that recent investors are continuing to capitulate. The firm stated the seven-day moving average for net realized losses remained near $500 million daily.
“While the intensity has cooled, the broader regime still signals a market under pressure, with participants in the base formation phase continuing to capitulate,” Glassnode noted. Analyst Michaël van de Poppe highlighted Bitcoin’s Sharpe Ratio had fallen to -38.4.
He described this as a “phenomenal chart,” noting that such levels have historically marked low-risk accumulation zones. The ratio measures expected return per unit of risk.
