- Fears of a possible $8.5 billion market dump by Mt. Gox and recent large withdrawals from US-based Bitcoin exchange-traded funds (ETFs) are the causes of the depressed market attitude.
The market mood for Bitcoin BTC tickers down $60,987 and the broader cryptocurrency industry is measured by the Crypto Fear and Greed Index, which has plummeted to its lowest score in almost eighteen months.
On June 24, the index dropped 21 points, entering the Fear zone. This was one of the largest daily declines in recent memory.
It hasn’t fallen below a score of 30 since January 11, 2023, when Bitcoin was trading at $17,200, just two months after the collapse of the cryptocurrency exchange FTX. The last time it was in the Fear zone (a number between 24 and 50) was on May 3. That was around seven weeks ago.
The score in the Greed zone at this time last week was 74.
Bitcoin hit a seven-week low on June 24 and is now trading around $60,300.
Amidst reports that Mt. Gox may be getting ready to sell $8.5 billion worth of Bitcoin to its creditors, as well as Germany beginning to sell some of its holdings of the cryptocurrency, there has been a negative feeling surrounding outflows from spot Bitcoin exchange-traded funds, which have totaled over $1 billion over the last ten trading days.
But according to a representative of the bitcoin investing firm Galaxy Digital, the market might be exaggerating the Mt. Gox worries a little bit.
A declining network hashrate has caused Bitcoin miners to sell off more coins than usual, which could have also weakened investor mood.
The market volatility (25%), trade volume (25%), dominance of Bitcoin (10%), and trends (10%) are all taken into account by the Crypto Fear & Greed Index. Surveys used to be one of its factors (15%), but that metric is currently on hold.
Since it achieved a score of 90 Extreme Greed on March 5, when Bitcoin eclipsed its previous all-time high price of $69,000 set back in November 2021, the score has primarily been heading downward.
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.
