The crypto market has plunged into "extreme fear," as indicated by the Fear & Greed Index dropping to 10, its lowest point since February. Bitcoin, the leading cryptocurrency, has seen a significant sell-off, losing over 5% in the past week and trading below $100,000 for the second time this month, currently hovering around $96,000. The broader market mirrored this decline, with the CoinDesk 20 index falling by 5.8%. Analysts attribute this downturn to several factors: profit-taking by long-term holders, institutional outflows, macroeconomic uncertainty, and low liquidity in the market. The situation is worsened by fading expectations for a Federal Reserve interest rate cut this month. The odds for a 25 basis point reduction are now estimated at around 50%. Adding to the uncertainty, recent economic indicators, including October's inflation data, may not be released due to delays following a government shutdown. This lack of information leaves traders without key data to guide their decisions. Furthermore, liquidity remains low as the market has not fully rebounded from the crash in October, which has restricted order-book depth on major exchanges. In a separate development, Bitcoin managed to recover briefly above $70,000, spurred by cooler-than-expected inflation figures and a renewed risk appetite among investors. However, the Fear & Greed Index still reflects significant anxiety, indicating that sentiment remains fragile. In the past week, investors realized $8.7 billion in losses from Bitcoin, which could signal a capitulation phase and a shift in supply to stronger hands, raising questions about the market's stability moving forward.