Bitcoin Slides Below $93K as Crypto Fear & Greed Index Reaches 2022 Lows

Bitcoin has slumped to approximately $92,750, triggering a cascade of market capitulation with the Crypto Fear & Greed Index plummeting to 9—marking its worst reading since mid-2022. This extreme capitulation signal coincided with $565 million in positions being liquidated across the crypto sector within a single 24-hour window, with on-chain metrics revealing that newer market entrants (holding assets less than 90 days) accounted for the majority of sell-offs.

The pessimistic sentiment extends to institutional flows, as Bitcoin ETFs witnessed their third consecutive week of net outflows, with $1.11 billion in total withdrawals. BlackRock’s IBIT led the exodus at $532.41 million alone, signaling diminishing institutional appetite despite the recent price rally.

Current market sentiment paints a decidedly bearish picture, with on-chain data showing approximately 49.53% of traders positioned bearishly on the broader market. Meanwhile, the total cryptocurrency market capitalization contracted to $3.31 trillion, registering a 0.9% decline from previous levels.

This Crypto Fear & Greed Index reading—now in the extreme fear zone—historically precedes significant market reversals, leaving traders to speculate whether this capitulation represents capitulation exhaustion or merely the beginning of deeper declines.