The cryptocurrency market has entered a state of fear as Bitcoin's price fell below $110,000, impacting the broader market. This decline led to significant liquidations and a sharp drop in open interest, with the crypto Fear & Greed index plummeting to 28, its lowest level since April 2. Ethereum also saw its largest open interest decline since 2024. Despite the bearish sentiment, Bitcoin has rebounded above $110,000. However, it remains uncertain whether this marks the beginning of a recovery or a temporary bounce. Analysts suggest the drop could represent a market reset, as traders assess the current conditions.