- Bitcoin fell below $100,000 again as the fear and greed index dropped to 10
- Altcoin profits have collapsed into deep capitulation territory, with only 5% in profit.
- The chances of a reduction in rate add more uncertainties to the market, which was already weak.
Bitcoin fell below $100,000 again this week, triggering a sharp drop in market sentiment. It also pushed the Fear and Greed Index into the “extreme fear” zone.
Bitcoin Weakens As Fear Spikes
The index slipped to 10, as traders reacted to a rapid wave of selling across major cryptocurrencies. This is the lowest level of this index since late February. The decline marks one of the most tense weeks the market has seen since early March.
Source: Alternative.me
Bitcoin declined by over 7% in the past seven days to hit the $96,000 level. It is the second time this month that the price of the cryptocurrency has dropped below $100,000.
The sell-offs can be attributed to a mix of profit-taking, institutional withdrawals, fading macro confidence, and thin liquidity on major exchanges.
Glassnode data adds another layer to the developing stress in the market. The firm reported that altcoin profits have collapsed into what it describes as “deep capitulation territory.”
Also Read | Bitcoin Price Outlook: Could Surge to $120,000 If Buyers Hold
Bitcoin-Altcoin Split Shows Market Weakness
Hence, only about 5% of the altcoin supply is still in profit. This marks one of the harshest altcoin drawdowns in recent years and highlights how severe the sell-off has been across the broader market.
According to the chart shared by Glassnode, Bitcoin’s profit supply has only recently begun to decline sharply. This widening divergence between Bitcoin and the top 500 altcoins is unusual because both typically move in closer alignment during downturns.
Glassnode noted that this kind of split never occurred during previous cycles. The firm said this gap between Bitcoin and altcoins could slow a full market recovery. This is because traders’ confidence in the two markets differs.
Source: X
Rate Cut Probability Odds Strengthens Doubt
Expectations of a November rate cut by the Fed have dropped. Prediction markets such as Kalshi and Polymarket share similar expectations. They place the odds of a 25 basis point cut near 50%, showing uncertainty among traders.
Source: Kalshi
The situation became more complicated after the White House confirmed that key economic data may not be released on time. October inflation data and several labor reports remain delayed due to the recent government shutdown.
Also Read | Bitcoin’s Drop Won’t Last If Capital Keeps Flowing, Says CryptoQuant CEO
