The crypto fear and greed index has fallen to 25, the lowest level since September 2024, signaling extreme fear in the market as Bitcoin drops below $93,000.

The Fear and Greed Index, provided by software development firm Alternative, measures market sentiment on a scale of 0 (Extreme Fear) to 100 (Extreme Greed).

As of Feb. 25, the index has dropped 24 points from 49 to 25 in a single day, shifting from “Neutral” to “Extreme Fear,” its lowest level since 2024, when it stood at 22.

This sharp decline follows a broader market sell-off. In the past 24 hours, Ethereum (ETH) and Solana (SOL) have dropped 10% and 14% respectively, while Bitcoin (BTC) has fallen below $93,000. Coinciding with Bitcoin’s decline, withdrawals from Bitcoin ETFs have now exceeded $1 billion in the past two weeks.

According to Coinglass data, the decline in the crypto market led to $957.85 million in liquidations, of which $886.47 million came from long positions.

Open interest, meanwhile, has decreased by 5% to $108 billion, indicating a decline in risk tolerance. The surge in liquidations points to a previously overly optimistic posture, which worsened the sell-off by wiping out leveraged positions.  

This pullback may have been largely triggered by additional strain on the crypto markets due to macroeconomic uncertainty.

Markets have been alarmed by U.S. President Donald Trump’s Feb. 24 disclosure that his administration will move forward with 25% tariffs on Canada and Mexico. In addition, concerns about the Fed delaying rate cuts due to higher-than-expected inflation data have kept borrowing rates high. 

The $1.4 billion Bybit hack, which is one of the biggest exchange exploits ever, has also negatively impacted market sentiment. While Bybit has been successful in covering the loss from the hack, the market is still reeling from security concerns surrounding the incident.

However, analysts have noted that the the market’s response is still more measured than it was during the FTX collapse in 2022, even while sentiment is weak. This indicates a maturing cryprocurrency market.