Bitcoin near $62,000 as market sentiment hits extreme fear

Bitcoin is trading near a historically depressed price level, signaling a market in extreme distress despite a modest bounce on Thursday, June 11. The cryptocurrency briefly fell below $60,000 earlier this week, marking its first visit to that zone since 2024, and is now hovering around $62,150. This places Bitcoin close to its 200-week moving average, a technical threshold that has typically appeared only during the deepest phases of past bear markets, putting the asset in the bottom 10% of its historical valuation range.

Market sentiment has plummeted, with the Crypto Fear and Greed Index registering a score of 9, indicating extreme fear. This represents a steep decline from a reading of 48 just one month ago. The downturn coincides with sustained institutional capital flight, as spot Bitcoin exchange-traded funds have recorded net outflows for 13 consecutive sessions. A major corporate holder, Strategy, recently executed its first net sale of Bitcoin since 2022.

Analysts point to a severe contraction in overall market demand as a critical structural concern. Data shows combined spot and perpetual futures demand has fallen by approximately 650,000 BTC over recent weeks, a...