BTC falls below 98K, fear index hits 7-month low

Bitcoin has just experienced an uncomfortable fall - a big dump of 3.5% within 24 hours, now dropping below $98,000. What's even more heartbreaking is that the encryption fear & greed index (Fear & Greed Index) has fallen to 15, setting a new low in 7 months.

How scary is this number? When FTX collapsed, the index was just over 20, and the level of panic this time has already reached historical levels.

Institutions are running away

On November 12, Bitcoin spot ETF saw a net outflow of $278 million in a single day. In just this month, the cumulative outflow has exceeded $1.1 billion. The big players are voting with their feet, clearly lacking confidence in the future market.

The crux of the problem

The 43-day government shutdown in the United States has just ended, and liquidity has not yet fully recovered. More critically, the Federal Reserve's hardline stance—expectations for a rate hike in December have basically evaporated, shattering many people's fantasies of “rate cuts to save the market.”

On-chain data is also speaking the truth: the exchange's BTC reserves have started to increase again, and retail investors are ready to dump.

What do you think?

Optimists: When the fear index is extreme, it is often a bottom-buying opportunity; history is cyclical like this.

Pessimists: If 98K cannot be held, the next support level may fall to 92K-95K.

By the way, the stock market isn't doing too well either - the Nasdaq fell by 2%, and the S&P 500 fell by 1.3%. Commodities are all cooling down.