【Executive Summary】 Bitcoin (BTC) mounted a brief rally to test the key psychological resistance of $105,000 during the Asian and European trading sessions. However, the momentum was abruptly lost, dragging the price down due to a broad sell-off in U.S. tech stocks. The crypto market's "Fear & Greed Index" has plunged to its lowest level since the April tariff shock, signaling a dominant mood of intense investor panic. Analysts suggest the overall market lacks a clear risk appetite direction as macro risks persist.
US Tech Stock Pullback Drags BTC Down, Fails to Hold Key Level
In the recent trading cycle, Bitcoin's price movement featured a classic intra-day reversal. During the Asian and European market hours, buying pressure propelled BTC upward, testing the crucial $105,000 resistance. However, as the U.S. trading session opened, market sentiment quickly deteriorated.
Core Factor for the Pullback: The market was significantly impacted by the general decline in U.S. technology stocks. Given that cryptocurrencies, particularly Bitcoin, maintain a high correlation with high-growth tech shares (like the Nasdaq Index) in terms of risk preference, the sell-off in U.S. equities rapidly transmitted to the digital asset sector. Consequently, Bitcoin failed to hold onto its daily gains, ending the day with a 1.38% drop, underscoring the asset's vulnerability to global macroeconomic fluctuations, especially U.S. stock market volatility.
Market Sentiment Nears 'Extreme Fear': Lowest Since April
The "Fear & Greed Index," a key tool for measuring investor psychology, has fallen to its lowest level since the April tariff and regulatory shocks.
Key Observation: This drop places market sentiment firmly in the "Fear" zone and dangerously close to "Extreme Fear."
Analysts point out that the index's decline signifies:
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Heightened Uncertainty: Investors are increasingly unsure about a sustained rally and broadly fear further price correction in the short term.
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Potential Contrarian Signal: While extreme fear is not an immediate buy signal, historical data suggests that when the index hits such lows, it often precedes a market bottom or a potential rebound opportunity.
The current primary driver of the market has clearly shifted from on-chain fundamentals to sentiment and macro risk, with panic now being the dominant emotion.
Bitcoin Dominance Stable: Capital Seeks Safety
It is noteworthy that despite the widespread price pullback and panicky sentiment, Bitcoin's share of the total cryptocurrency market capitalization (BTC Dominance) remains stable, oscillating within the ~60% range.
This stability offers a key market interpretation:
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Safe Haven Attribute: When market risk rises, capital tends to flow out of more volatile Altcoins and consolidate into Bitcoin, the most liquid and institutionally recognized asset. The stable BTC Dominance indicates that funds are adopting a "holding Bitcoin for safety" strategy, rather than exiting the crypto market entirely.
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Lack of Direction: The overall market remains in a phase of indecision and observation. Clear signals for a directional shift in risk appetite—such as a massive institutional inflow triggering a rally, or a comprehensive sell-off of risk assets—have not yet materialized.
Outlook: Focus on US Stocks and Macro Policy
In the short term, Bitcoin's performance will remain constrained by the global macro environment, particularly the Federal Reserve's policy direction and the performance of U.S. technology stocks. $105,000 remains a formidable technical resistance that bulls must overcome. As long as market fear persists and external capital flows are absent, Bitcoin is likely to continue consolidating within its current range, awaiting clearer signals from the macro risk landscape.
