Bitcoin Fear & Greed Index Hits FTX Collapse Levels as BTC Price Drops to $60K

The Bitcoin Fear and Greed Index, a key market sentiment indicator, has plummeted to levels not seen since the dramatic collapse of the FTX exchange. This sharp move into "extreme fear" territory coincides with Bitcoin's (BTC) price struggling to hold the critical $60,000 support level. Analysts are closely watching this volatility gauge, which suggests investor anxiety is reaching a peak comparable to a major market crisis. The current sell-off is attributed to a combination of macroeconomic pressures, large outflows from Bitcoin ETFs, and heightened selling activity from miners. While such extreme fear readings have historically preceded potential market rebounds, the immediate outlook remains cautious as Bitcoin tests a crucial price floor.