Risk appetite in the cryptocurrency market dropped sharply as of June 6. The Crypto Fear and Greed Index, published by Alternative.me, plunged to a level of 12, marking its lowest point in recent weeks. During the same period, Bitcoin tumbled as far as $61,100, with losses spreading broadly across the major digital assets.
Sharp deterioration in sentiment index
The index, which ranges from zero to 100, registered the reading of 12, highlighting that the market was deep in the extreme fear zone. Just a day earlier, on June 5, the index had stood at 13, while about a week ago, it hovered near 52. This rapid decline indicates that investor sentiment has deteriorated rapidly in a very short time.
Mini glossary: The Crypto Fear and Greed Index is an indicator that measures overall investor sentiment by combining metrics such as price volatility, trading volume, social media trends, and market momentum. Alternative.me has been publishing it daily for several years.
Data shows that Bitcoin fell to its lowest level since February during intraday trading. The ongoing weakness across the crypto space was attributed mainly to persistent outflows from cryptocurrency investment funds.
Net outflows from spot Bitcoin ETFs have now extended to 13 trading sessions. JPMorgan analyst Kenneth Worthington highlighted that almost $400 million was withdrawn from these funds on Wednesday alone.
Simultaneous declines in Bitcoin and altcoins
After dipping below $70,000 in early June, Bitcoin continued falling to around $61,100. The price hovered just above its 200-week moving average near $61,300—a level historically tied to long-term market bottoms in previous cycles.
Ether faced even sharper losses. The second-largest cryptocurrency fell below $2,000 and was trading near $1,585. As of June 5, the seven-day sentiment average was recorded at 19, while the 30-day average stood at 30—both reflecting a deeply pessimistic outlook.
The selling pressure spread to other major coins as well. On June 6, BNB slid by 3.9 percent, XRP by 4.4 percent, Solana by 6.4 percent, and Cardano by 8 percent. ADA, in particular, was reported to be nearing multi-year low zones.
Region historically associated with market bottoms
CFGI.io, which tracks sentiment for more than 50 tokens, showed both Bitcoin and Ether firmly lodged in the extreme fear category. Most large-cap assets were in the fear zone, with only a handful of smaller tokens remaining neutral. According to DEXTools data, the total crypto market cap shed roughly $110 billion within just 24 hours at the start of June’s selling wave.
A level of 12 is seen as a major threshold historically linked to periods of capitulation selling. Similarly low readings had previously occurred during key downturns, such as the bear market bottom of December 2018, the pandemic crash in March 2020, the Terra LUNA crisis in June 2022, and the selling episode in August 2024.
However, such extremely low index readings have not always signaled immediate market bottoms. After the Terra LUNA collapse, the index fell to single digits, but Bitcoin only reached its cycle bottom several months later. Ahead of the next index update on June 7, investors are now closely monitoring whether Bitcoin can reclaim the $60,000 mark and if ETF outflows will begin to slow.
