The crypto fear and greed index dropped from 72 to 60 within just 24 hours, according to data from alternative.me. This sudden shift in sentiment came even though Bitcoin remained stable above the $90,000 level.
Crypto Fear and Greed Signals Growing Market Uncertainty
On April 23, Bitcoin crossed $90,000 for the first time since March 6, pushing the crypto fear and greed reading to a two-month high of 72. However, the index dropped significantly the next day without any major decline in Bitcoin’s spot price.
Previously, the last time the index was at 60 was on February 4, when Bitcoin dipped below $100,000 due to new U.S. tariff announcements. Now, the fall in sentiment does not correlate with price drops, suggesting broader market tension.
Bitcoin Leverage Surges as Volatility Risks Rise
João Vedson, CEO of Alphractal, noted that April 24 saw $8.41 billion in new Bitcoin positions — a record daily volume. Approximately $2.4 billion worth of positions were closed, likely from market makers exiting longs or bearish liquidations.
Vedson warned that the massive volume of leveraged trading combined with low spot activity indicates that markets are primed for volatility. However, the direction of the next major move remains uncertain.
He also emphasized that Bitcoin currently has a large number of long positions. This situation raises the risk of new liquidation events if the market turns. After recent short squeezes, maintaining long positions has become increasingly risky.
