Bitcoin Price Tumbles as Fear and Greed Plunge to Historic Lows

Bitcoin's recent price action has been marked by a sharp decline, with the cryptocurrency falling back to the mid-$64,000s after reaching a high of around $68,600 on Saturday. The drop has left traders on edge, with heavy losses for late buyers and on-chain figures showing real money changing hands as positions are forced closed.

According to CoinGlass, more than 144,839 traders were liquidated in the last 24 hours, with total liquidations of over $508 million. The Crypto Fear and Greed Index, which measures sentiment among traders, has plummeted to 5 out of 100 - a level that has only been seen three times since 2018.

Despite the extreme fear among traders, some analysts believe that panic can clear out fragile holders and leave room for steadier hands to step in. The combination of heavy liquidations, deep fear readings, and large realized losses could be signals that a base is forming, paving the way for a potential rebound.