Extreme Fear Grips the Market
The Crypto Fear & Greed Index, which measures market sentiment, dropped to a score of 22 on Sept. 6, indicating “extreme fear.” This is a significant decline from the previous day’s score of 29, signaling a heightened level of uncertainty and concern among investors.
Bitcoin Drops Below $56,000
Bitcoin (BTC) briefly fell below $56,000, hitting a low of $55,838 before recovering slightly to trade at $56,533. This drop wiped out $29.7 billion from its market capitalization, reflecting a sharp decline in investor confidence.
Arthur Hayes Predicts Further Decline
BitMEX co-founder Arthur Hayes weighed in on the situation, predicting that Bitcoin could sink another 12% to fall below $50,000 over the weekend. Hayes shared on X (formerly Twitter), “BTC is heavy. I’m gunning for sub $50k this weekend. I took a cheeky short.”
US Economic Worries Add Pressure
Concerns about the sluggish United States economy, fueled by disappointing jobs data released on Sept. 5, are contributing to the downward trend. Many investors fear that an anticipated Federal Reserve interest rate cut could further weigh on Bitcoin’s price.
Major Cryptocurrencies See Losses
Other cryptocurrencies, including Ether ($ETH ), Solana ($SOL ), and XRP, also suffered losses following Bitcoin’s decline. Ether dropped 2.23%, Solana fell 2.82%, and XRP saw a 2.19% slump, showing that the broader crypto market is being dragged down by Bitcoin’s struggles.
Liquidations Pile Up
The price drop led to $94.26 million in liquidations in the past 24 hours, with Bitcoin and Ether long bets accounting for over half of the total. Nearly $36.71 million worth of Bitcoin longs were liquidated, contributing significantly to the market turmoil.