Crypto Frozen in Fear, F&G Index Drops 42 Points in A Week, Is Another Price Crash Imminent?
The crypto market has entered a deep state of worry, with sentiment collapsing sharply over the previous week.
Key (*42*):
- Crypto sentiment plunged into Extreme Fear, with Alternative.me’s index dropping to 22.
- Bitcoin struggled close to $110,000 amid renewed US–China commerce tensions.
- Long-term holders offered 265,700 BTC in the previous month, whereas overleveraged merchants confronted $418 million in liquidations.
According to Alternative.me’s Fear & Greed Index, market sentiment fell to 22, Extreme Fear, down from 64 (Greed) only one week in the past.
Meanwhile, CoinMarketCap’s Crypto Fear and Greed Index additionally dropped to twenty-eight (Fear) from 54 (Neutral) final week, signaling widespread warning amongst merchants.
Bitcoin Stalls at $110K as US–China Tensions Spark Flight to Gold
The speedy shift in sentiment mirrors rising unease throughout world markets.
Bitcoin hovered simply above $110,000 on Thursday, struggling to carry key help as renewed US–China commerce tensions dampened danger urge for food.
The flight to security was underscored by gold hitting new report highs above $4,230 per ounce, signaling investor desire for conventional safe-haven property.
Meanwhile, exchange-traded fund (ETF) information confirmed sustained outflows. U.S. spot Bitcoin ETFs noticed withdrawals of $94 million on Wednesday, extending a multi-day streak of redemptions.
Derivatives information additionally pointed to mounting promoting strain, with complete liquidations surpassing $418 million over the previous 24 hours.
Long positions outnumbered shorts by greater than 2.4 to 1, suggesting that many leveraged merchants have been caught off guard as costs retreated.
On-chain information paints an equally cautious image. Long-term holders, wallets with cash held for over 155 days, have offered roughly 265,700 BTC in the previous month, the biggest such outflow since January.
Analysts interpret this as profit-taking amid heightened volatility, a sign that even veteran buyers are trimming publicity.
“The transfer displays rising warning amongst veteran holders amid volatility, portray a bearish state of affairs for the cryptocurrency,” mentioned Milad Azar, Market Analyst at XTB MENA.
As reported, Bitcoin could also be nearing a crucial turning level, based on dealer Tony “The Bull” Severino, who believes the next 100 days could determine whether or not the cryptocurrency enters a parabolic rally or ends its present bull cycle.
Severino pointed to the Bollinger Bands indicator on Bitcoin’s weekly chart, which has tightened to ranges unseen earlier than, typically a precursor to sharp value strikes in both route.
Severino cautioned that “head fakes,” or false breakouts, are frequent throughout such setups. He famous Bitcoin lately failed to interrupt above the higher band with power after briefly touching $126,000, suggesting a possible dip earlier than any sustained rally.
BitMEX Chair Says Ethereum Could “Flip” Bitcoin Like Equities Overtook Gold After 1971
Ethereum may finally surpass Bitcoin’s market share, just like how U.S. equities overtook gold following the top of the gold commonplace in 1971, based on BitMEX chair Tom Lee.
Speaking with ARK Invest CEO Cathie Wood, Lee in contrast Ethereum’s potential rise to the shift that occurred after the “Nixon Shock,” when the US greenback turned absolutely artificial and unpegged from gold.
Lee famous that the transfer away from gold created large demand for monetary merchandise tied to the greenback, paving the way in which for Wall Street’s dominance.
“The market cap of equities right this moment is $40 trillion in comparison with $2 trillion for gold,” he mentioned, highlighting how monetary innovation remodeled the greenback’s position globally.
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