The Crypto Fear and Greed Index, a barometer of market sentiment for Bitcoin and the wider crypto industry, has plummeted to its lowest level in almost 18 months. This decline, which saw the index drop 21 points to a score of 30, comes in the wake of Bitcoin's fall below $60,000, its lowest since early May.

Several factors have contributed to this surge in fear, including significant outflows exceeding $1 billion from spot Bitcoin exchange-traded funds over the past 10 trading days. Additionally, the potential liquidation of $8.5 billion worth of BTC by the bankrupt Mt. Gox exchange has added to the uncertainty.

However, some experts, such as Samson Mow from Galaxy Digital, suggest the market's reaction may be an overreaction. Mow argues that the Bitcoin dip is driven by sentiment and fear, not by the selling of large holdings. He points out that large entities are adept at not moving the market, citing the recent imbalance in ETF inflows where demand was 27 times the supply, yet the price remained mostly flat.

Despite the current fear, the market outlook remains optimistic. The Crypto Fear & Greed Index, which considers factors such as market volatility, trading volume, Bitcoin's dominance, and trends, has been on a downward trend since reaching a peak score of 90 in the "Extreme Greed" zone in March.