Bitcoin’s price has dropped significantly below $56,000, sending the market into a “fear-fueled” mode according to the Fear and Greed Index, which reached 22 on September 6. The drop has wiped out around $30 billion of Bitcoin’s market cap. Arthur Hayes, co-founder of BitMEX, predicted a further drop to $50,000 over the weekend, reflecting ongoing concerns about a slowing US economy and the impact of negative jobs data.
Other cryptocurrencies were not immune to the declines, with Ethereum, Solana, and XRP all seeing declines of more than 2%. The negative moves led to the liquidation of positions worth $94.26 million, including $36.71 million in long Bitcoin positions and $17.36 million in long Ether positions.
The increasing talk of deteriorating market sentiment suggests that global economic challenges may continue to impact the cryptocurrency market in the coming period, which may make traders more cautious in making their decisions.
