The sentiment for Bitcoin (BTC) and the broader crypto market has taken a downturn, with the Crypto Fear and Greed Index hitting a 9-month low.
The index saw a decline on June 25, dropping from 51 points to 30 and entering the "Fear" zone. This marks the first time since September 12, 2023, that the index has fallen this low and represents one of the largest one-day declines seen in the past few years.
Since reaching a score of 90 in the "Extreme Greed" zone on March 5—when Bitcoin surpassed its previous all-time high of $69,000—the index has been on a downward trajectory. Just a week before this drop, the index was in the "Greed" zone at 74.
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Several factors have contributed to this negative sentiment. Over the last two weeks, spot Bitcoin exchange-traded funds (ETFs) have experienced outflows totaling $1.4 billion.
Additionally, news surfaced that the bankrupt crypto exchange Mt. Gox might soon liquidate $8.5 billion worth of BTC to settle with creditors, and Germany has begun selling some of its BTC reserves.
Further fueling the negative market sentiment, Bitcoin miners have been selling off more Bitcoin than usual.
Bitcoin's value fell to $59,173 on June 24, and, at the time of writing, it trades at $61,097.
The BitDegree Crypto Fear and Greed Index is composed of several factors, including market volatility and momentum, social media, and Bitcoin's dominance.
While some industry experts argue that the market may be overreacting, the negative sentiment reflects a climate of fear and uncertainty.
In other news, Donald Trump has recently expressed his support for Bitcoin mining after meeting with leaders from the industry.
