Bitcoin News Today: Crypto's Deep Fear: A Bottom Signal or a Deceptive Downturn?

The crypto Fear & Greed Index has plunged to a seven-day low of 24, signaling prolonged market anxiety as Bitcoin (BTC) consolidates between $103,000 and $115,000. This extended fear period, the longest since March 2025, historically precedes local market bottoms, with on-chain data showing elevated choppiness levels that suggest further consolidation before a major directional move according to analysis. The index, which measures sentiment on a 0–100 scale, reflects investor psychology driving irrational behavior during sharp corrections or euphoric rallies.

Recent market dynamics underscore this anxiety. On November 21, 2025, crypto markets experienced a $1.5 trillion selloff, with Bitcoin tumbling to $87,000 amid unexplained liquidation chaos according to TradingView reports. The crash, occurring ahead of the U.S. employment report release in December, highlighted how sentiment-rather than macroeconomic news-now dominates price action. Short-term Bitcoin holders remain underwater, echoing patterns from previous cycles, though analysts caution that a relief rally does not guarantee a new all-time high. Meanwhile, Ethereum (ETH) failed to reclaim $2,800 despite ETF inflows, with 14-day losses of 19.4% indicating rising selling pressure.

The Fear & Greed Index's current extreme bearishness has drawn comparisons to prior bottoms, such as the March 2025 low of 13, which coincided with a $76,000 BTC floor during Trump-era tariff uncertainty. However, traders warn against relying solely on the index, as it often lags price movements and can misfire in volatile environments. For instance, the index's extreme greed readings in April 2021 and March 2024 preceded major peaks, but similar lows in July 2021 and December 2022 did not immediately trigger reversals according to data.

Amid the turmoil, Coinbase is positioning itself as a stabilizing force. The exchange announced 24/7 futures trading for major altcoins-including Shiba Inu (SHIB), Dogecoin (DOGE), and Cardano (ADA)-starting December 5. This expansion, part of its CFTC-regulated derivatives suite, aims to attract institutional investors seeking compliant alternatives to offshore platforms. Coinbase's new U.S. perpetual-style futures with five-year expiries, mimic crypto-native perpetual swaps but operate within regulatory frameworks. The move follows its $2.9 billion acquisition of Deribit and comes as decentralized exchanges like Hyperliquid gain traction according to financial reports.

Regulatory clarity and product innovation may yet spark a reversal. Historically, prolonged fear periods have coincided with seller exhaustion, suggesting the current consolidation could end with a rebound. However, with the broader market still reeling from the November crash and altcoin ETF outflows persisting, caution remains warranted according to market analysis.