The Crypto Fear and Greed Index, a very popular sentiment indicator of the broader crypto market, has hit the lowest levels since April, as Bitcoin price crashes further under $110K. The broader market has been facing volatility over the past week as BTC and altcoins face major selling pressure. It will be interesting to see whether Q4 can bring some optimism back into the market.
Data from Alternative.me shows the Crypto Fear and Greed Index has tumbled from a monthly high of 73 to 32, marking its lowest reading in months and signaling a shift into the fear zone.
The decline follows a broad market sell-off that pushed Bitcoin below the key $110,000 support level and dragged total crypto market capitalization down to $3.76 trillion. Altcoins also faced steep losses alongside Bitcoin.
Source: Alternative.me
Analysts attribute the downturn to hawkish remarks from Federal Reserve officials, who cautioned against inflation risks and the potential dangers of aggressive rate cuts. The comments dampened expectations that the Fed would accelerate its pace of easing, a move previously seen as supportive for digital assets.
The sell-off also reflects “sell-the-news” behavior, with traders unwinding positions after last week’s rate cut. Meanwhile, investors remain cautious ahead of the upcoming U.S. Personal Consumption Expenditure (PCE) report, a key inflation measure closely watched by policymakers
Amid the continuous selling pressure, the Bitcoin (BTC) price has crashed under $110,000, with daily trading volumes dropping 38% to $45 billion, as mentioned in our previous post. BTC has been facing strong selling pressure throughout September following rejection at $118K. Speaking on the development, popular crypto analyst Miles Deutscher said:
Following the September downturn, market analysts are optimistic that the BTC price could bounce back in Q4. Crypto analyst Merlijn the Trader says Bitcoin’s performance in September is a reliable signal for the final quarter of the year. He noted that every green September in Bitcoin’s history has been followed by an “explosive” rally in Q4.
Source: Melijn The Trader
With 2025 closing out another positive September, Merlijn suggested the next three months are unlikely to trade sideways. Instead, he expects Bitcoin to enter a sharp upward phase, describing the outlook as “liftoff”.
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