Crypto Hits 'Extreme Fear' as Bitcoin (BTC) Price Loses $70,000

The Crypto Fear & Greed Index has entered the 'Extreme Fear' zone as Bitcoin's price fell below $70,000, down 5% in the past 24 hours. This marks Bitcoin's first drop below this psychological level since August, with the current price 45% below its all-time high of $128,198.

Market liquidations

Crypto liquidations reached $1.31 billion, with over $1 billion coming from long positions. The general market sentiment remains dim as the long-awaited recovery fails to materialize.

Institutional outflows

Institutional demand has crashed, with Bitcoin ETFs posting $1.44 billion in net outflows this past week. The outflows have been consistent for almost a month, reflecting growing institutional caution.

Broader market impact

The resignation of Nvidia CEO Jensen Huang coincided with bearish market sentiment, causing a flash crash across financial markets. Additionally, MSCI's November Index Review showed Strategy and Metaplanet leaving the MSCI USA Index, potentially affecting investment flows and stock prices.

However, Bitcoin's RSI is near 30, which is close to the oversold zone, suggesting that a further decline is not necessarily inevitable.