Bitcoin News Today: Crypto Bulls and Bears Clash as Fear Index Plunges to Six-Month Low

The cryptocurrency market is gripped by extreme fear as the CoinMarketCap Crypto Fear & Greed Index plummeted to 21 on November 4, 2025—the lowest level since April 2025 and a six-month nadir, according to Lookonchain. This "Extreme Fear" reading, calculated using volatility (25%), trading volume (25%), social media sentiment (15%), and other metrics, per Coinotag, follows a $2 billion liquidation cascade over 24 hours driven by leveraged traders and a sharp Bitcoin price correction, as reported by CoinEdition. The index rebounded slightly to 27 by November 6, in a Lookonchain update, but the broader market remains in a risk-off phase, with Bitcoin trading below $100,000 and Ethereum (ETH) under $3,400, according to FXStreet.

Binance co-founder Changpeng Zhao (CZ) questioned the bearish sentiment, noting historical rebounds from similar levels, as CoinEdition reported. "The market backdrop is still strong, as evidenced by equity market performance," said Wintermute, a top-tier trading firm, adding that crypto lags in liquidity amid global rate cuts, a point CoinEdition also highlighted. On-chain data from CryptoQuant revealed panic selling, with 45,700 BTC—worth over $5 billion—sent to exchanges by short-term holders at a loss, according to the same report.

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Institutional outflows accelerated the selloff. U.S. Bitcoin ETFs recorded $137 million in outflows on November 3, with BlackRock's IBIT leading the exodus, according to Yahoo Finance. Ethereum ETFs also saw $119 million in redemptions, though some funds like Grayscale's ETHE posted smaller inflows, per FXStreet. Meanwhile, a Hyperliquid whale opened $140 million in leveraged short positions against Bitcoin and XRP, netting $3.1 million in nine hours as prices dipped less than 2% and 4%, respectively, in a Yahoo Finance piece. This activity underscores growing bearish conviction, despite contrarian views from figures like Rishabh Singhal of CryptoWaley, who cited a 50% Bitcoin rebound after prior fear index lows, as CoinEdition noted earlier.

Regulatory pressures compounded the downturn. Australia imposed sanctions on North Korean hackers linked to $1.645 billion in crypto thefts, according to CryptoNews, while the UK announced stablecoin rules aligned with U.S. timelines, per Cryptopolitan. Galaxy Digital slashed its Bitcoin end-of-year target to $120,000 from $185,000, citing a "maturity era" of low volatility (reported by Yahoo Finance). Yet, some optimism persists: Metaplanet secured a $100 million BTC-backed loan to boost holdings, as FinanceFeeds reported, and prediction markets on Myriad suggest a 56% higher probability of Bitcoin hitting $115,000 than $85,000, per the earlier Yahoo report.

Technical indicators hint at potential support. Bitcoin's RSI nears oversold territory, and a close above the 200-day SMA at $109,000 could reverse momentum, according to FXStreet. However, the 50-day EMA's bearish crossover with the 100-day EMA and weak on-chain liquidity remain risks, per Bitget.

Market participants remain divided. While CZ's recent Aster (ASTER) purchase and DeepSnitch AI's bullish AI-driven analysis signal accumulation, institutional firms like Galaxy warn of prolonged consolidation. The Fed's upcoming quantitative easing and ETF inflow resumption could reignite bullish momentum, but for now, fear dominates.