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ZyCrypto 2025-02-25 15:51:16

Crypto Market Enters “Extreme Fear” As Bitcoin Sinks Below $87,000; XRP, ETH, SOL, DOGE Fall Dramatically

It’s a blood-red Tuesday across the crypto markets. Crypto market sentiment has fallen into “extreme fear” as Bitcoin slumped to as low as $86,887, its lowest since mid-November. Broadly, the crypto market has dropped by over 10% over the last day, with some leading coins like Solana, Ripple’s XRP, and Dogecoin nursing much larger losses during the same span. Crypto Trader Sentiment Drops To ‘Extreme Fear’ The Crypto Fear & Greed Index, a multifactorial measure of crypto market sentiment, hit a score of 25 on Feb. 25, showing “extreme fear. Tuesday’s 24-point drop from the day prior that pinned sentiment at “neutral” signals one of the sharpest drops since September. The quick drop signifies a rapid dip toward overly bearish sentiment. Reasons for the panic include the Monday crypto market sell-off extending into Tuesday and the heavy outflows from US spot Bitcoin exchange-traded funds (ETFs). Bitcoin is down 7.8% to trade hands at $87,939, while Ethereum plummeted 11.3% to $2,377, CoinGecko data shows. Ripple’s XRP remains the biggest loser in the top 10 coins, with its decline deepening since earlier Monday. It’s down 15.6% over the last day and 19.7% on the week to a current price of around $2.08. Other top coins are faring almost as badly as XRP, with Solana’s SOL down roughly 13.7% at $135.52, top meme coin Dogecoin falling circa 13% to $0.1997, and Cardano also down 13% at a current price of $0.6345. $1.5 Billion Crypto Liquidation Storm Amid Tuesday’s across-the-board price carnage, liquidations have surged to $1.48 billion over the last 24 hours, per data from CoinGlass , with Ethereum and Bitcoin leading the charge at about $641 million and $302 million, respectively. Most of the liquidations are for those betting on a price rise. The current pullback mirrors the 2017 market formation when Bitcoin saw a 28% correction five times, each lasting two to three months, Global Macro Investor founder and CEO Raoul Pal, observed in a Feb. 25 post on the X platform. The crypto market drawdown followed another wave of selling in US Bitcoin exchange-traded funds, with around $516 million in investor cash exiting the funds on Feb. 24 alone. The BTC ETFs have now witnessed six straight days of outflows, data from Farside Investors shows. Moreover, the crypto industry was recently rocked by the largest hack in crypto history on Feb. 21, when Bybit lost nearly $1.5 billion .