Bitcoin Faces Extreme Fear Amid Mt. Gox Repayments and German Government Sales
- Extreme Fear in the Market: Bitcoin plunged into the “extreme fear” zone on the Fear and Greed Index, scoring 25 out of 100, the lowest level in 18 months.
- Causes of Market Turmoil:
Mt. Gox Repayments: Repayments from the Mt. Gox exchange.
German Government Sales: Ongoing sale of 50,000 BTC seized by the German government.
- Price Volatility: Bitcoin’s price surged to $59,516 on July 11 due to lower-than-expected US inflation data but faced resistance at $60,000 and began to decline.
- Impact of German BTC Sales: The German government’s sale of $286 million worth of BTC on July 11 and additional sales added downward pressure on Bitcoin’s price.
- ETF Inflows: Spot Bitcoin ETFs in the US, especially BlackRock’s IBIT, saw increased inflows totaling $79 million on July 11, which could help stabilize the market.
- Current Trading Price: At the time of writing, Bitcoin was trading around $57,000, with investors closely monitoring the market for further developments.
DYOR.
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