Cryptocurrency market sentiment has fallen to its lowest level in more than eight months, as macroeconomic uncertainty spooks market participants. Cryptocurrency analysts still believe that the bearish mood will not last long.
Saturday’s update of the Crypto Fear & Greed Index showed an extreme fear score of 10, the lowest since February 27th. The signs came after Bitcoin plummeted below $95,000 on Friday.
Bitcoin falls despite US government shutdown ending
🔴Update: Our Crypto Sentiment Index also continues to show positive divergence.
Read: Sentiment index is bearish, but not as much as during the last correction despite falling prices.
It shows that sellers are exhausted. https://t.co/GYl5Ytc5zR pic.twitter.com/XxSeuo5Ewb
— Dr. Andre Dragosch⚡ (@Andre_Dragosch) November 14, 2025
At the time of this writing, Bitcoin is trading at $95,778, down nearly 1.5% in the past 24 hours. BTC’s bearish momentum continued throughout this week, with it down over 6.3% over the past seven days.
Dave Rosenberg, founder and president of Rosenberg Research, said digital assets are officially in a bear market. drop An increase of over 20% within a month. The tech executive also noted that there have been significant redemptions in ETFs throughout this week.
BTC sentiment declined in February after the Spot Bitcoin ETF recorded its worst single-day outflow of $1.14 billion. Bitcoin has since fallen from $102,000 at the beginning of the month to $84,000. Andre Dragos, head of European research at Bitwise, believes the current situation is not as bad as it seems compared to past declines.
“The sentiment index is bearish, but not as much as during the last correction, even though prices are lower. Our crypto sentiment index also continues to show positive divergence.”
–Andre DragosHead of research at Bitwise.
Sven Henrik, founder of NorthmanTrader, said On Friday, it was announced that the BTC price chart shows potential positives for Bitcoin bulls. He noted a descending wedge on the chart, suggesting a positive divergence.
Santiment also warned on Saturday of the possibility of broad consensus forming around a specific price floor. The analysis firm argued that true bottoms are often formed when the majority expects prices to fall further.
Santiment said continued online conversations suggesting the worst is over points to a movement in the opposite direction. Messari’s research manager also revealed that in his eight years in the crypto industry, he had never seen such a disparity between headlines and sentiment.
The analytics firm revealed that BTC’s ratio of positive to negative comments is currently at its lowest level in the past 30 days. According to Santiment, Bitcoin’s social dominance has skyrocketed by more than 40%.
Santiment also argued that Bitcoin could be bullish, citing recent inflows into Spot Bitcoin ETFs totaling $1.17 billion over the past three business days. The firm noted that large inflows into ETFs often correspond to local price highs, while large outflows coincide with market bottoms. BTC funds recorded net outflows of $866 million on Thursday, the second-worst day on record.
Possibility of interest rate cuts after government shutdown ends
Bitcoin fell this week despite recent US President Donald Trump sign A bill to end the government shutdown. The government shutdown lasted approximately 43 days, making it the longest in U.S. history.
Cryptocurrency market participants blamed the shutdown on recent volatility and uncertainty surrounding the US Federal Reserve’s decision to cut interest rates.
Stocks slowed their decline Friday afternoon as investors braced for a slew of economic data to be released next week as the U.S. government reopens.
Juan Perez, trading director at Monex USA in Washington, argued that bitcoin and cryptocurrencies generally have a positive correlation with stock market booms. He doesn’t think BTC has become a valuable alternative asset to avoid the fears of other sectors.
Risk assets are under pressure as more and more policy makers signal a trend toward holding off on easing. Kansas City Fed President Jeffrey Schmidt recently expressed doubts about cutting interest rates in December, and other central bank officials have made similar suggestions.
At the time of publication, data from the CME FedWatch tool showed that the market had priced in the probability of a December rate cut by about 44.4%.
