Key Takeaways:
- Bitcoin’s price dropped to $55,748, sparking extreme fear in the market, as indicated by the Crypto Fear and Greed Index at 22.
- Arthur Hayes predicted a potential Bitcoin drop below $50K, further increasing concerns among traders.
- Significant liquidations occurred, with over $71 million liquidated in 24 hours, including $36.71 million in Bitcoin positions.
The Crypto Fear and Greed Index has dropped to a score of 22, indicating “extreme fear” as of Sept. 6, 2024. This shift in sentiment follows recent price declines in the cryptocurrency market, particularly Bitcoin’s fall below $56,000.
Bitcoin Drops to $55.75K as Arthur Hayes Predicts Further Decline Below $50K
Bitcoin’s drop to $55,748 is one of the key factors behind the Crypto Fear and Greed Index’s fearful scenario. After previously hitting $58,000 earlier in the week, the price fell sharply.
Arthur Hayes, co-founder of BitMEX, predicted that Bitcoin might drop below $50,000 over the weekend, further raising concerns.
Another factor affecting the market is the recent U.S. jobs data released on Sept. 5. The report showed numbers below expectations, increasing uncertainty about a potential interest rate cut by the Federal Reserve. This has added further downside pressure on the cryptocurrency market.
Crypto Market Sees Major Liquidations as BTC Leads with $36.71M in Sell-Offs
The Crypto Fear and Greed Index’s dip into the “extreme fear” stage has impacted other major cryptocurrencies. Ethereum (ETH), Solana (SOL), and XRP saw price drops of 2.23%, 2.82%, and 2.19%, respectively. This led to significant liquidations, especially for traders holding long positions.
According to CoinGlass, over $71 million worth of long positions were liquidated within 24 hours. Bitcoin accounted for $36.71 million of these liquidations. The sell-offs created additional downward pressure on the market.
The Crypto Fear and Greed Index is often viewed as an indicator of market sentiment. When fear is high, some investors look for potential buying opportunities. The index can reflect market uncertainty, but the unpredictable nature of the cryptocurrency market means that outcomes are never certain.
