Core Insights - The crypto market sentiment has sharply declined, with the Fear & Greed Index dropping to 10, indicating "extreme fear," marking a near nine-month low [1] - Bitcoin has experienced significant losses, trading just under $96,000, and has fallen below the $100,000 mark for the second time this month [1][2] - The wider crypto market, as measured by the CoinDesk 20 index, has lost approximately 5.8% of its value over the past week [2] Market Dynamics - The sell-off is attributed to profit-taking by long-term holders, institutional outflows, macroeconomic uncertainty, and the liquidation of leveraged long positions [3] - There are diminishing expectations for an interest rate cut from the Federal Reserve, with the odds of a 25 basis point cut now near 50% according to the CME's FedWatch tool [3] - Recent delays in the release of key economic indicators, including October inflation, due to a government shutdown have left traders with less macro data to analyze [4] Liquidity Concerns - The crypto market is facing low liquidity, which has not fully recovered from the major crash in October, resulting in structurally lower order-book depth across major centralized exchanges [4]