Bitcoin$BTC ($BTC) was sitting comfortably above $90,000 on January 28th, giving investors confidence that the uptrend was solid and under control. Fast forward to Friday morning, and BTC briefly touched $60,000, erasing weeks of gains in a matter of days. The speed and scale of the drop caught many traders off guard.

Fear Replaces Confidence

Market sentiment indicators reacted instantly. Greed turned into hesitation, and hesitation quickly became fear. Traders who were aggressively buying near the highs suddenly shifted into capital preservation mode. Long positions were liquidated, stop-losses were triggered, and panic selling amplified the downside move.

This kind of rapid decline doesn’t just hurt portfolios—it damages confidence. When price falls faster than fundamentals can explain, psychology takes over, and emotional decisions begin to dominate the market$BTC

BTC

66,157.09

-1.79%