• Bitcoin Fear Index falls to 14, signaling Extreme Fear.
• BTC drops more than 4% to $66,300, erasing weekend gains.
• Liquidations hit $458 million, mostly from long positions.
The Bitcoin Fear Index returned to Extreme Fear territory after BTC erased its weekend rally.
Bitcoin dropped more than 4% on Monday to trade near $66,300. As a result, sentiment deteriorated sharply across the broader crypto market.
The move followed a brief recovery attempt over the weekend.
Bitcoin Fear Index Slides to Extreme Fear at 14
According to the Crypto Fear and Greed Index, the Bitcoin Fear Index score fell to 14 out of 100 on Monday. That level qualifies as Extreme Fear.
The reading came after Bitcoin declined more than $3,000 in under two hours. The asset had touched $68,600 on Saturday before reversing lower.
Market data shows BTC has now returned to the bottom of a range that formed after the Feb. 6 drop toward $60,000.
Liquidations Accelerate as BTC Loses Momentum
Volatility intensified during the sell-off. Data from CoinGlass indicates more than 136,000 traders were liquidated over the past 24 hours.
Total liquidations reached approximately $458 million. Notably, 92% of those losses came from leveraged long positions.
Such rapid deleveraging often amplifies price swings. When long positions unwind simultaneously, forced selling pressures the spot market.
On-Chain Data Shows Ongoing Realized Losses
Meanwhile, blockchain analytics firm Glassnode reported Monday that the seven-day moving average of net realized losses among recent investors remains near $500 million per day.
The firm noted that capitulation intensity has eased compared to earlier waves. However, it said the broader market appears to be in a base-formation phase with continued pressure from recent buyers.
That assessment suggests losses persist, even if panic selling has moderated.
Sharpe Ratio Compression Draws Historical Comparisons
Crypto analyst Michaël van de Poppe wrote Saturday on X that Bitcoin’s Sharpe Ratio had fallen to -38.4. The Sharpe Ratio measures return relative to risk.
Van de Poppe said similar readings in past cycles marked low-risk accumulation zones. Still, such comparisons depend on broader macro conditions and liquidity trends.
Therefore, while some traders interpret compressed risk-adjusted returns as opportunity, others remain cautious.
Market Impact
Bitcoin currently trades near a key support zone at the lower end of its recent range. Market participants are watching closely to see whether the level holds.
Extreme sentiment readings, elevated realized losses, and heavy liquidations resemble prior cycle stress points. However, confirmation of a structural bottom typically requires sustained demand and reduced volatility.
The broader crypto market has mirrored Bitcoin’s weakness. Investors continue to debate whether the current phase reflects consolidation or signals deeper downside risk.
The Bitcoin Fear Index has reached one of its lowest levels of the cycle as BTC erased weekend gains. Liquidations and realized losses underline persistent fragility.
At the same time, historical sentiment extremes have previously coincided with turning points. Whether this moment marks stabilization or further correction remains uncertain.
