Bitcoin dropped to $60,500 this week, its lowest level since October 2024, while the total cryptocurrency market capitalization fell to $2.2 trillion. The selloff accelerated across the market, with most major coins moving lower as pressure built from weaker risk appetite, ETF outflows and a sharp jump in liquidations.
Part of the retreat has been tied to broader macro unease. Rising tension between the United States and Iran added uncertainty, with both sides issuing warnings that any escalation could affect the region and possibly oil prices. The report also notes that there are no confirmed accounts of U.S. military action, and any direct connection between geopolitical fears and crypto price moves remains speculative.
Risk assets weaken as money shifts toward value
The drop in crypto has unfolded alongside a broader move out of risk assets. Investors have been rotating away from growth-heavy trades and into value-focused products. The article points to the stock market for comparison: the tech-heavy Nasdaq 100 Index has declined, while value funds such as the Vanguard Value ETF and the Schwab US Dividend ETF have climbed to record highs. The style shift is clear. Crypto has been caught in it.
Fund flows have added more strain. Spot Bitcoin ETFs have seen more than $689 million in outflows this year and are now in their fourth straight month of negative flows. Ethereum ETFs have also posted outflows of more than $149 million. At the same time, crypto liquidations surged over the last few days. In the past 24 hours, liquidations rose by more than 122% to above $2 billion, a sign that forced unwinds are intensifying market swings.
Fear and Greed Index falls to 5
Even with the market under pressure, the article highlights several signals that often appear near turning points. The Crypto Fear and Greed Index has fallen to 5, its lowest reading in years. That is an extreme level. In past cycles, strong advances have often started when sentiment was deeply fearful rather than euphoric, while prices tended to weaken when the index moved into extreme greed.
One example cited in the report came in December, when the index entered the extreme greed zone. Bitcoin and other altcoins then rebounded in January, with BTC nearing $100,000. Earlier still, the index moved into extreme fear in April last year and the market later rebounded to a record high after Trump changed his tone on tariffs. The pattern described is simple: once sentiment reaches an extreme, much of the selling pressure may already have been absorbed.
RSI at 27 points to a deeply oversold market
Technical indicators are telling a similar story. Bitcoin’s Relative Strength Index has dropped to 27, reaching an oversold level for the first time since November 2022. According to the source article, Bitcoin has rebounded each time it has fallen into similar oversold territory. That does not remove near-term volatility. It does show that the market is now trading in a zone where downside momentum has historically become stretched.
The article also says Bitcoin has reached the target implied by a rising wedge pattern. Based on that chart setup, the widest part of the formation measured about 42%, and Bitcoin has now fallen by more than 42% from the breakout point. From a technical perspective, that suggests the decline has already met the pattern’s projected move, leaving traders focused on whether price can stabilize from here.
Crypto remains in a high-volatility phase, with ETF outflows and liquidation pressure still weighing on prices. Even so, sentiment and momentum indicators are now sitting in territory that has often coincided with market rebounds.