- As Bitcoin tries to recapture a critical price level, its fear and greed index has plummeted to extreme dread for the first time since January 2023.
The market’s perception of Bitcoin and other cryptocurrencies is tracked by the Crypto Fear and Greed Index, which has dropped to “extreme fear,” the lowest level since January of last year.
The declining index score was caused by the fact that, for the second time in the previous 48 hours, the price of Bitcoin was unable to breach above $60,000.
Crypto and forex trader Justin Bennett informed his 111,000 followers on X on July 11 that the price of Bitcoin had once again rejected $60,000 and that a possible rising wedge had formed, indicating more downside in the days ahead.
On July 10, bitcoin saw a surge as high as $59,485 before collapsing once more to $57,000 in the ensuing twelve hours. Again, on July 11, Bitcoin experienced a brief surge to $59,529 but was unable to maintain that level.
According to TradingView data, the price at which bitcoin is presently trading is $57,499, a 23% decrease from its all-time high on March 14 of this year.
Why has Bitcoin’s price remained low?
The news that Mt. The fact that Gox began paying back its creditors on July 5 may have contributed to the recent bear market by allowing up to $8.5 billion worth of Bitcoin to enter the market.
Furthermore, a significant portion of the recent decline in Bitcoin’s value has been attributed to possible massive sales by the German government, which in the previous 24 hours has transferred 16,254 BTC, or $935 million at current values, to market makers and exchanges, according to Arkham intelligence data.
The Crypto Fear and Greed Index takes into account trade volume (25%), market volatility (25%), the dominance of Bitcoin (10%), and trends (10%). Market surveys were weighted at 15% in the index; however, the metric has been suspended.
Bitcoin’s index score has been progressively dropping since it hit an all-time high of $69,000 established back in November 2021 on March 5, when it attained a score of 90 Extreme Greed.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
