Crypto investors are approaching extreme panic as Bitcoin falls to $50k.

The weekend left investors concerned about recent market conditions filled with fear for the crypto community.

According to current data from Alternative.me, the Crypto Fear and Greed Index sits at 26/100, indicating fear among investors. If the market condition worsens, the indicator may approach the extreme fear, this feeling may further damage the market.

Source: Alternative.me

Investors fear market conditions

The Crypto Fear and Greed Index compiles the main emotional sentiments of investors at a given time. The indicator includes five main states – high fear, fear, natural, greed and high greed. This indicator helps market participants get the broad emotional conditions they need to make appropriate investment decisions.

The fear index indicates that investors are afraid of the market situation and are selling their crypto stash. According to Alternative.me data, the index was 34/100 yesterday. However, current metrics show that fears are on the rise.

The last time such fear gripped the crypto market was in mid-July, when the German government sold 50,000 BTC seized from the movie piracy website Movies2K. At the time, BTC dropped to $54,000, the first since the end of February.

Why is the market falling?

Investors are not far-fetched about market conditions. Hours earlier, the leading cryptocurrency fell below $49,500 for the first time since mid-February. This significant decline has resulted in the loss of more than $500 billion from the crypto market over the past several days.

Although BTC has regained the $52,000 price mark, staying in this range for hours may raise doubts that the asset may fall again.

BitMEX co-founder Arthur Hayes said the sudden price drop was a whale dump on Twitter. Other factors that have fueled the bearish trends include a weakening US economy, uncertainty over the US Federal Reserve's next fiscal policy and the regular exit of Bitcoin exchange-traded funds.