Crypto Fear and Greed Index Returns to Historic Lows

Deep Tide TechFlow News, February 23 — According to Cointelegraph, Bitcoin experienced a sharp decline on Monday, dropping over $3,000 within two hours and falling more than 4% for the day. The current price is $64,300, erasing all weekend gains. The Alternative.me Crypto Fear & Greed Index has fallen back to 5 (out of 100), returning to the “Extreme Fear” zone. Since the index’s launch in 2018, such levels have only been seen in August 2019, June 2022, and earlier this month.

According to CoinGlass data, over 136,000 traders were liquidated in the past 24 hours, with a total liquidation amount of $458 million, of which 92% were leveraged long positions. On-chain data from Glassnode shows that the seven-day moving average of realized losses among investors remains close to $500 million per day, indicating the market is still in a phase of continued selling.

Additionally, analyst Michaël van de Poppe pointed out that Bitcoin’s Sharpe ratio has fallen to -38.4, a level only seen twice in history. This indicator is often considered a signal of low-risk accumulation zones. Currently, Bitcoin has fallen 48% from its all-time high of $126,000 in October last year and is about 5.5% below the 2021 bull market peak of $69,000.