Risk appetite in the cryptocurrency market has weakened significantly as of June 6. The Crypto Fear and Greed Index published by Alternative.me fell to 12, the lowest point in recent weeks. While Bitcoin fell to $61,100 during the same period, losses were spread across major digital assets.
Drastic deterioration in sensitivity indicator
A level of 12 on the index, which is measured between zero and 100, indicated that the market remained in a deep zone of extreme fear. The index was at 13 on June 5, and was around 52 about a week ago. This change indicated that investor perception had deteriorated sharply in a short time.
Mini dictionary: The Crypto Fear and Greed Index is an indicator that measures overall investor sentiment by combining indicators such as price volatility, trading volume, social media trend and market momentum. Alternative.me has been publishing this index daily for a long time.
According to the data, Bitcoin fell to its lowest levels seen since February in intraday transactions. It was reported that the ongoing outflow of money from crypto funds was behind the weakness in the market.
Net outflows in spot Bitcoin ETFs reached 13 trading days. About $400 million was withdrawn from the funds on Wednesday alone, according to JPMorgan analyst Kenneth Worthington.
Simultaneous decline in Bitcoin and altcoins
Bitcoin, which fell below $ 70,000 in the first days of June, later dropped to around $ 61,100. The price was seen trading just above the 200-week moving average at approximately $61,300. This level has been associated with long-term bottom areas in past cycles.
On the Ether side, the decline was sharper. The second largest crypto asset fell below $2,000 and traded around $1,585. As of June 5, the seven-day sensitivity average was recorded as 19 and the 30-day average was recorded as 30.
The selling pressure has spread to other major coins as well. According to June 6 data, BNB fell by 3.9 percent, XRP by 4.4 percent, Solana by 6.4 percent and Cardano by 8 percent. It was stated that ADA is approaching multi-year bottom areas.
Region historically associated with bottoms
CFGI.io, which tracks sentiment for more than 50 tokens, listed both Bitcoin and Ether in the extreme fear category. While most major assets were in the fear zone, only a limited number of smaller tokens remained neutral. According to DEXTools data, during the early June selloff, the total crypto market value decreased by approximately $110 billion in 24 hours.
The 12 level stands out as a threshold close to periods associated with capitulation sales in the past. Similar low values were seen during the bear market bottom in December 2018, the pandemic crash in March 2020, the Terra LUNA crisis in June 2022 and the sell-off period in August 2024.
However, such low readings did not always mean an immediate bottom. Although the index dropped to single-digit levels after the Terra LUNA collapse, Bitcoin hit the bottom of the cycle months later. The market is now watching for the next index update, due on June 7, as well as whether Bitcoin can regain the $60,000 threshold and whether ETF outflows will slow.
