Crypto Fear And Greed Index Plummets To "Extreme Fear"

The Crypto Fear and Greed Index that measures the sentiment of people towards cryptos regarding bitcoin has touched the lowest level of ‘Extreme Fear’ since 15th January, of the previous year. This decline came at the same time with BTC’s inability to reclaim the $60,000 level for the second consecutive time in the past two days.

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Bitcoin’s Struggle to Maintain Momentum

In the trading period of 11/07 post on X, Justin Bennett who is a crypto and forex trader for 111,000 audience averted that once again Bitcoin price has rejected the $60000 level adding the potential rising wedge formation may lead to more sell-off in the subsequent days. Bitcoin enjoyed a spike to $59000 on July 10 and then started receding to about $57000 within the next 12 hours. It briefly traded as low as $55,075 on June 27 but on July 11 climbed back up to $59,529 but did not have the staying power to hold that price. Now, it is at a price of $57,499 which is below even the 50-day Moving Average of $61,902; Bitcoin has lost 23% of its value after it reached an ATH of $69,000 on March 14 this year as seen on TradingView.

Factors Contributing to Negative Sentiment

It has been cause for recent sentiment to slightly decrease; Mt. Gox is reported to have begun paying back its creditors from July 5th and could release up to $8,5 billion worth of bitcoin into the market. Further, the sales from the German government have also contributed towards the trend in the downwards manner. According to the Arkham intelligence data, within the last 24 hours, 16,254 BTC or approximately $935 million were sent to market makers and exchanges.

READ: Bitcoin Price Could Double to $150K by Year-End, But Short-Term Risks Loom

The Crypto Fear and Greed Index used market volatility which contributes 25%, trading volume which is at 25%, Bitcoin’s domination at 10%, and trends at 10%. Prior to the index we had market surveys that contributed 15% but at present this is frozen. After hitting the level of 90, titled ‘Extreme Greed’ on March 5, when BTC departed from its previous highest record, the US Bitcoin index has been under gradual descent.

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