Fear Index Turns Extreme as Bitcoin, Ethereum, and XRP Plunge Together
Fear Index Turns Extreme as Bitcoin, Ethereum, and XRP Plunge Together
Bitcoin (BTC) has fallen below the $67,000 level, extending its decline for a third consecutive day amid waning interest from retail investors and a rise in short positions in the futures market. As funding rates have turned negative and market sentiment has plunged into “extreme fear,” major altcoins such as Ethereum (ETH) and XRP (Ripple) have also sharply declined, heightening concerns over further downside.
According to investment-focused outlet FXStreet on February 11 (local time), Bitcoin has dropped 15% so far this month, moving precariously toward its yearly low of $60,000. With the Crypto Fear & Greed Index sinking into extreme fear territory, a report by K33 Research noted that Bitcoin perpetual futures funding rates plunged to -15.5% over the past six days, marking the lowest level since September 2024.
Bearish sentiment has become pronounced in the derivatives market, with investors reducing risk exposure and increasing leveraged short positions. Bitcoin’s open interest-weighted funding rate fell from 0.0031% on Tuesday to -0.0014% on Wednesday, reflecting heightened caution in the market. Technical indicators also support bearish momentum, as the 50-day, 100-day, and 200-day exponential moving averages (EMAs) are all trending downward. On the daily chart, the Relative Strength Index (RSI) stands at 29, entering oversold territory and suggesting that selling pressure remains dominant.
Ethereum is likewise facing downward pressure, trapped below the $2,152 resistance level. Its open interest-weighted funding rate remains negative at -0.0060%, while the daily RSI has dropped to 28, indicating a deeply oversold condition. Analysts warn that if Ethereum fails to rebound from the $1,900 level, it could fall further to last Friday’s low of $1,747.
XRP recorded negative funding rates for five consecutive days and declined more than 2% intraday to $1.36. The current price remains well below key moving averages, including the 50-day EMA at $1.80. Should the downtrend persist, XRP may retest its October 10 low of $1.25 and last Friday’s low of $1.12.
However, some technical indicators are showing early signs of a potential reversal. The red bars on the Moving Average Convergence Divergence (MACD) histogram for both Bitcoin and XRP are shrinking, suggesting that selling pressure may be easing. Experts note that if Bitcoin reclaims the $70,000 level or if XRP’s MACD line crosses above the signal line, market sentiment could shift from a defensive stance to a recovery phase.
Disclaimer: This article is for investment reference purposes only, and no responsibility is taken for investment losses based on this information. The content should be interpreted solely for informational purposes.
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