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Fear has gripped the cryptocurrency sector, with the widely followed Crypto Fear & Greed Index plummeting to a score of 10, its lowest level since February.

The plunge into "extreme fear" territory comes as Bitcoin struggles to stay above $96,000, a significant drop from its recent highs.

This level of pessimism was last seen during February's sharp decline, which was triggered by record outflows from spot Bitcoin ETFs.

Despite the gloomy figures, some analysts warn that the current mood may be exaggerated and could be short-lived.

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