Fear and Greed Index: Why Bitcoin Price Is Crashing Today

The crypto market has entered a sharp downturn today as the fear and greed index plunges into “Extreme Fear.” Bitcoin price today has fallen into the mid-$80,000 range after a fast and unexpected sell-off. Many traders are asking why crypto is crashing and why Bitcoin is dropping so quickly despite recent highs.

The entire cryptocurrency market is moving lower at the same time. Bitcoin, Ethereum and major altcoins are posting steep 24-hour losses. Bitcoin is now down more than 6–10% daily and over 25% for the month, retreating sharply from its record level above $110,000 reached just weeks earlier. Sentiment has flipped from confidence to fear in a matter of days.

Fear and Greed Index and Bitcoin Price Today

The fear and greed index, which measures market sentiment on a scale from 0 to 100, is currently sitting in the low teens. This marks a level identified as “Extreme Fear,” historically associated with major corrections and emotional selling.

Bitcoin price today in BTC USD pairs is trading between $83,000 and $85,000 depending on the exchange. This represents a strong pullback from the previous day’s prices above $91,000. It also places Bitcoin at its lowest level in months. Traders watching BTC charts see a significant monthly drop that many are calling a mini crypto crash.

The sell-off is hitting altcoins even harder. Tokens that experienced large rallies earlier in the year are now facing rapid declines. Many are posting double-digit losses as liquidity thins out and selling pressure intensifies.

How Extreme Fear Is Driving Crypto and Bitcoin Lower

The biggest question today is simple: why is crypto crashing and why is Bitcoin dropping so fast? Analysts point to several triggers working together.

First, markets are cooling after a powerful multi-month rally that pushed Bitcoin to new all-time highs. When momentum slowed, leveraged positions began unwinding. Forced selling from liquidations accelerated the decline.

Second, global markets are shifting into a risk-off mode. Concerns over interest rates, economic uncertainty and slower liquidity are pushing investors toward safer assets. In past cycles, these conditions have triggered similar dips in Bitcoin price USD charts.

Third, liquidity in the crypto market has thinned out in recent sessions. With fewer active buyers and smaller order books, even moderate selling can drag prices lower. This effect is clear today as each dip in BTC leads to more selling across altcoins.

Finally, sentiment itself is adding pressure. When the fear and greed index drops into “Extreme Fear,” many retail traders react emotionally, choosing to exit or reduce exposure. This creates a feedback loop: falling prices trigger more fear, and more fear triggers more selling.

Overall, today’s drop shows how quickly sentiment can shift in crypto. The fear and greed index captures that shift clearly. Whether this becomes a deeper correction or a temporary pullback depends on how fast confidence returns to the market.

Disclaimer: This article is for informational and news purposes only. It is not financial, investment, legal or tax advice. Cryptocurrency is highly volatile. Always conduct independent research and consult a licensed financial adviser before making investment decisions.

FYI (keeping you in the loop)-

Q1: What is the crypto fear and greed index today?

The index is currently in “Extreme Fear,” registering in the low-teen range. This shows strong negative sentiment across the crypto market.

Q2: Why is crypto crashing right now?

Crypto is crashing due to a post-rally correction, risk-off global trading conditions, thinning liquidity and emotional selling triggered by fear. These combined forces are pushing Bitcoin and altcoins lower.

Q3: What is the Bitcoin price today?

Bitcoin price today is trading around the mid-$80,000 range. This marks a significant daily and monthly drop after reaching record highs in recent weeks.

Q4: Does extreme fear usually mean a buying opportunity?

An extreme fear reading can signal oversold conditions, but it is not guaranteed. Traders should use independent research and caution before making any decisions.

Q5: How does the fear and greed index affect Bitcoin volatility?

When fear rises, volatility often increases. Traders react emotionally, and larger price swings occur. The index helps measure this sentiment shift.

References

Reuters. (2025). Bitcoin and cryptocurrencies fall as risk sentiment deteriorates. November 21, 2025.

Associated Press. (2025). Crypto markets slump amid renewed economic uncertainty. November 21, 2025.

CNN Business. (2025). Bitcoin drops after recent highs as traders pull back. November 21, 2025.