Bitcoin fell to $62,700 late Monday as the Fear and Greed Index dropped to 5. The slide signals one of the most bearish sentiment readings in crypto history, intensifying pressure on leveraged traders.
The world’s largest cryptocurrency was down 3.36% over 24 hours, recovering modestly to $63,220 by 1:30 a.m. ET Tuesday, according to data. Ether (ETH) declined 2.5% to $1,828, XRP fell 1.5% to $1.33, and Solana (SOL) lost 2.3% to $76.8. Total crypto market capitalization slipped 3.42% to $2.25 trillion.
Is This Deleveraging Or True Capitulation?
The pullback follows a 4% drop Sunday that pushed bitcoin below $65,000, amid macro shocks including violent riots in Mexico and record-low U.S. pending home sales. Yet traditional risk assets have remained relatively resilient, creating a divergence that suggests crypto-specific stress. U.S. spot bitcoin exchange-traded funds recorded their fifth consecutive week of net outflows, the longest streak since March 2025, including $203 million withdrawn Monday, while ether ETFs saw $50 million exit.
“Bitcoin's move below $63,000 appears to reflect a broad deterioration in crypto sentiment rather than a single fundamental catalyst,” said Min Jung, associate researcher at Presto Research.
She added that tariffs and renewed geopolitical uncertainty are reinforcing a risk-off tone across digital assets. Still, Jung noted crypto’s underperformance relative to equities indicates weak marginal demand, thinner liquidity, and continued deleveraging within crypto-native markets.
Derivatives data points to forced selling but not yet wholesale surrender.
“We've seen massive long liquidations cascading through hundreds of millions wiped, negative funding rates sticking around, sharp drops in open interest, and clear bearish skew in futures,” said Andri Fauzan Adziima, Research Lead at Bitrue.
However, he said on-chain data shows long-term holders are not dumping en masse, with some accumulation emerging amid tactical de-risking.
Adziima identified $60,000 to $63,000 as a critical support range. A sustained hold could set up a short squeeze if negative funding pressures bearish positions, while a break below $60,000 risks accelerating liquidations toward the mid-$50,000s or lower. ETF flows and macro headlines remain the next catalysts.
