The Crypto Fear & Greed Index declined to one of its lowest readings on Monday after Bitcoin fell more than 4% to around $64,300 though has shown signs of recovery as it surpasses $66,000 once more.

Over the past 24 hours, more than 136,000 traders were liquidated, with total liquidations reaching approximately $458 million. According to CoinGlass, about 92% of these liquidations came from leveraged long positions.

Bitcoin had moved higher over the weekend, briefly reaching $68,600 on Saturday, but has since returned to the lower boundary of a range that formed following the sharp Feb. 6 drop to $60,000. The asset now trades roughly 45% below its October all-time high of $126,000 and about 4% below the 2021 cycle peak of $69,000.

Sentiment sinks toward historic extremes

Alternative.me’s Crypto Fear & Greed Index, a widely used measure of overall market mood, dropped again to 5 out of 100, signaling “extreme fear.” Since its launch in 2018, the index has reached such depressed levels only three times before — in August 2019, June 2022, and earlier this month.

On-chain analytics firm Glassnode reported that the seven-day moving average of net realized losses for recent investors remained close to $500 million per day, suggesting continued capitulation among market participants.

“While the intensity has cooled, the broader regime still signals a market under pressure, with participants in the base formation phase continuing to capitulate.”

Risk metrics hint at potential accumulation zones

At the same time, analyst Michaël van de Poppe highlighted what he described as a “phenomenal chart,” showing Bitcoin’s Sharpe Ratio falling to -38.4 — a level that has historically aligned with “low risk” accumulation areas.

The Sharpe Ratio evaluates performance relative to risk, indicating the return expected for each unit of risk taken, and is often used to gauge whether market conditions may be shifting toward more favorable long-term entry zones.

Sources:

https://cointelegraph.com/news/bitcoin-drops-back-record-fear-levels-as-it-wipes-weekend-gains

https://www.tradingview.com/symbols/BTCUSD/?exchange=COINBASE

https://x.com/CryptoMichNL/status/2025101261784199502

https://x.com/glassnode/status/2025728673329111346

https://www.coinglass.com/liquidations