**Morning Minute by Tyler Warner**
*The analysis and opinions expressed are my own and do not necessarily reflect those of Decrypt.*
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**GM! Today’s Top News:**
– Crypto majors fall another 3-8%; BTC at $104,500
– Fear & Greed Index reaches Extreme Fear for the first time in months
– Berachain halts its blockchain after Balancer exploit
– Strategy announces its latest financial instrument, STRE
– MegaETH prepares to issue $1.3B in refunds 😨
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### Crypto Slides into “Extreme Fear”
Crypto sentiment has collapsed. Does this mean the bottom is close?
**What Happened**
The Crypto Fear & Greed Index shows the market is now in “Extreme Fear” territory with a score around 21. This marks a dramatic swing from recent “Greed” levels posted just last month and neutral ratings from only a few days ago.
For those unfamiliar, the index measures six key signals every day: volatility, volume/momentum, social media, surveys, dominance, and trends. Currently, it reads:
– Volatility is elevated
– Volume and momentum have collapsed
– Social indicators are sharply declining
– Bitcoin dominance is creeping higher, meaning money is fleeing altcoins into the perceived safety of BTC
– Trend data shows spikes in queries like “bitcoin price manipulation”
This comes just a day after new data surfaced showing that long-term Bitcoin holders sold approximately $40 billion worth of Bitcoin in October (around 405,000 BTC).
**What They’re Saying**
> “Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.” – Alternative. ME site
**Why It Matters**
Sentiment often dictates behavior, which influences capital flows, liquidity, and ultimately price.
– **Risk to flow models:** When fear rules, investors tend to stay on the sidelines, even if ETFs are launching or infrastructure is expanding. This delays capital inflow.
– **Liquidity stress:** Extreme fear often coincides with liquidations, margin blow-ups, and forced selling (see October 10th and its fallout).
– **Narrative reset:** The conversation has shifted from “institutional adoption” and “ETF expansion” to “survival, consolidation, and risk management.”
So, what does this mean for the near term? Historically, when the index dips deep into fear, it can precede the next leg up—if other factors align. That’s the classic “buy the fear” signal.
Right now, it’s hard to predict precisely what that signal will be. But keep an eye on outflows from long-term Bitcoin holders. They dumped $40 billion recently, with only about $4 billion in ETF and Direct Access Trading buy pressure to offset it. Despite that, Bitcoin still held strong at around $107K, which is bullish.
Once these holders finish selling or at least take a break, a new foundation for Bitcoin to move upwards will emerge. If Bitcoin breaks back above $120K, the 4-year market cycle will be officially broken—setting the stage for gains into 2026.
For now, expect more time spent in the fear range. But remember: this too shall pass.
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### Macro Crypto and Memes
A few notable Crypto and Web3 headlines caught my eye today:
– Crypto majors are down another 3-8% as the selloff continues; BTC -3% at $104,500, ETH -5% at $3,520, BNB -6% at $955, SOL -8% at $162
– Top movers include DCR (+111%), DASH (-50%), and ICP (+30%)
– Liquidations topped $1.2 billion on Monday, with longs taking 90% of the hit
– Crypto Fear & Greed Index entered Extreme Fear on Monday
– Balancer was exploited for approximately $128 million yesterday after an apparent Vyper-coded hack
– Berachain halted its blockchain amid cascading pool drains across Ethereum and connected networks tied to the Balancer hack
– MegaETH will refund $1.3 billion over the next two days, following ICO oversubscription
– Stream Finance paused withdrawals after acknowledging a $93 million loss
– SUI’s Momentum Finance began its airdrop today
– New mobile trading app ‘Share’ launched on Solana
– Liquid announced a $7.6 million raise led by Paradigm to build out its mobile-first trading platform
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### What is Happening in NFTs?
Here is a list of other notable headlines from the day in NFTs:
*(The original text did not provide specific NFT headlines.)*
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Stay tuned for more updates and analysis tomorrow!
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*Tyler Warner*
*Morning Minute*
https://decrypt.co/347272/morning-minute-crypto-slides-into-extreme-fear-as-bitcoin-tumbles