TechFlow News: On February 23, according to Cointelegraph, Bitcoin plunged sharply on Monday, dropping over $3,000 within two hours and falling more than 4% intraday. It is currently trading at $64,300—erasing all weekend gains. The Alternative.me Fear & Greed Index for cryptocurrencies has consequently fallen back to 5 (out of 100), re-entering the “Extreme Fear” zone. Since the index’s launch in 2018, this level has only been matched in August 2019, June 2022, and earlier this month.
According to CoinGlass data, over 136,000 traders were liquidated in the past 24 hours, with total liquidations amounting to $458 million—92% of which were leveraged long positions. On-chain data from Glassnode shows that the seven-day moving average of investors’ net realized losses remains near $500 million per day, indicating the market is still in a sustained distribution phase.
Additionally, analyst Michaël van de Poppe noted that Bitcoin’s Sharpe Ratio has dropped to -38.4—the only two historical instances where it fell below this level occurred previously. This metric is typically viewed as a signal of a low-risk accumulation zone. Bitcoin is now down 48% from its all-time high of $126,000 reached in October last year, and also sits approximately 5.5% below the bull-market peak of $69,000 recorded in 2021.
