Bitcoin Price Tumbles Amid Market Sentiment Shift

The recent downturn in the Bitcoin price can be attributed to a combination of factors that have contributed to a negative market sentiment.

The Crypto Fear & Greed Index has plummeted to 5, placing the market deep into 'Extreme Fear' territory. This is an unusual occurrence and typically indicates broad pessimism among investors, leading to reduced retail participation.

Derivatives data suggests that open interest has decreased, indicating a reduction in leveraged positions, which can slow down price appreciation. Additionally, funding rates have cooled down, showing fewer traders are betting aggressively on a rebound.

The uncertainty surrounding President Trump's 15% global tariff announcement and six straight weeks of ETF outflows is also contributing to the decline. Large wallet activity has increased in recent sessions, which may signal strategic repositioning by whales, further adding to market anxiety.