Bitcoin Crash Drives Crypto Fear to Lowest Level Since 2022

The Crypto Fear & Greed Index declined to a score of 9, its weakest reading since June 2022, while Bitcoin has slid by close to 38% from its 2026 high. The selloff triggered more than $2.7 billion in liquidations over 24 hours, mostly from leveraged long positions, as market pressure from declining US tech stocks and cautious expectations around Federal Reserve policy weighed on risk assets.

Extreme Fear Returns

Crypto market sentiment plunged to its weakest level in more than three and a half years as Bitcoin suffered a sharp double-digit decline to around $60,000. The downturn erased months of gains and intensified concerns that the broader crypto market may be entering a deeper corrective phase rather than a short-lived pullback.

Crypto Fear and Greed Index

The Crypto Fear & Greed Index dropped to a score of just 9 out of 100 on Friday, firmly placing the market in “extreme fear” territory. This is the lowest sentiment reading since June of 2022, when confidence collapsed after the implosion of the Terra blockchain ecosystem. The index has been deeply depressed for roughly two weeks as Bitcoin slid aggressively from its recent highs.

Bitcoin has now fallen roughly 38% from its 2026 peak close to $97,000 in a matter of weeks, wiping out gains that were accumulated over the past sixteen months. During early Friday trading, the price dipped to a little over $60,000, which was its lowest level since October 2024, before rebounding modestly to just above $64,000. Despite the bounce, Bitcoin is still down around 10% over the past 24 hours, one of its largest single-day declines since mid-2022.

BTC’s price action over the past 24 hours (Source: CoinCodex)

The violent price move has also triggered heavy forced liquidations across derivatives markets. Over the past 24 hours, more than 588,000 traders were liquidated for a combined $2.7 billion. Roughly 85% of those positions are leveraged long bets, primarily tied to Bitcoin, according to data from CoinGlass.

Analysts point to macro pressures amplifying the crypto selloff. Jeff Ko, chief analyst at CoinEx Research, believes that Bitcoin’s steep weekly drawdown coincided with a slump in US tech stocks, where concerns about stretched valuations and a potential AI-driven bubble have resurfaced. Even Amazon saw a double-digit decline after mixed earnings, adding to risk-off sentiment. 

Meanwhile, LVRG Research director Nick Ruck said softer US labor market data and rising unemployment claims fueled doubts about economic strength, increasing caution around the Federal Reserve and its appetite for aggressive rate cuts.