Crypto sentiment index drops to October levels as Bitcoin dips under $92K

The Crypto Fear & Greed Index — a measure of Bitcoin and the broader crypto market sentiment — has fallen 19 points in a day to its lowest score since Oct. 14.

The fall to a score of 50 out of 100 is one of the index’s biggest daily drops over the last few years — causing market sentiment to plunge into the “Neutral” zone after three months in the “Extreme Greed” and “Greed” zones.

It comes as Bitcoin’s (BTC) price fell below $92,000 on Jan. 9, amid a report that the United States Department of Justice had been cleared to sell $6.5 billion of the 198,000 Bitcoin seized from Silk Road — though none has been sold so far. 

Analysts have also pointed the fall to expectations that the United States Federal Reserve may tighten monetary policy in 2025, which may impact Bitcoin and the broader crypto market.

Rising treasury yields and a strengthening US dollar have also held Bitcoin back from staying above $100,000 in recent weeks. 

The US spot Bitcoin exchange-traded funds also saw their second-largest outflow of nearly $570 million on Jan. 8 — signaling that Bitcoin may retrace even further, 10x Research’s founder Markus Thielen explained on Jan. 5.

Related: Bitcoin ETFs scooped up almost 3X more BTC than produced in December

The Crypto Fear & Greed Index produces a score based on market volatility (25%), trading volume (25%), social media sentiment (15%), Bitcoin’s dominance (10%) and trends (10%) to reach an overall score. 

The index score reached a 2024 high of 94 out of 100 on Nov. 22 — as the market was still responding positively to Republican Donald Trump’s presidential election victory and strengthening speculation over a strategic US Bitcoin reserve in 2025.

Magazine: Cypherpunk AI: Guide to uncensored, unbiased, anonymous AI in 2025