$BTC and the 1000 time waltz. While some are waiting for the bull run as a farmer is waiting for the rain after months of drought, Arthur Hayes, co-founder of BitMex, anticipates a further drop in the queen of cryptocurrencies below the $50,000 mark by this weekend. It must also be said that bitcoin, a barometer of crypto mood, has plunged below $56,000, awakening a climate of "extreme fear" (the famous Crypto Fear & Greed Index) that had not been felt for several weeks. A look back at Arthur Hayes' recent remarks.
A crypto market paralyzed by fear
The Crypto Fear & Greed Index, a key indicator that measures investor sentiment. The latter fell to 22 out of 100 on September 6, marking a return to the extreme fear zone. This sharp decline reflects the ambient nervousness in the face of the continuous decline in Bitcoin and global economic uncertainty. Since the beginning of August, this indicator has been oscillating dangerously between fear and gluttony. It fails to stabilize a clear trend.
And as if that were not enough, the price of BTC recorded a 2.7% drop in just 24 hours this Monday morning, from $58,000 to a low of $55,838 before rising slightly around $56,533 and then, at the end of the day today, falling below $54,000.Cascade of liquidations and tears of blood on the markets?
Hayes' predictions do not fall in the deaf ear: the market reacts feverishly, multiplying the liquidations of long positions on Bitcoin and Ethereum. The last 24 hours this morning saw $94.26 million in liquidations, mainly conducted by those who had bet on a price increase.
The Bitcoin and Ether long positions account for more than half of these liquidations, with more than $36 million for Bitcoin alone.
A macroeconomics that is not in favor of Bitcoin
Recent employment data in the United States, released on September 5, have also contributed to this climate of distrust. Below economists' expectations, they have accentuated fears of a lagging American economy, posing serious doubt on the future monetary policy of the Federal Reserve. Speculation about a potential drop in interest rates has only aggravated the feeling of nervousness in the markets.
Good. Note that this is not the first time, nor the last, that bitcoin makes us tremble. The Bitcoin plunge has brought with it the other major cryptocurrencies: Ether ($ETH ) fell by 2.23%, Solana ($SOL ) by 2.82% and #xrp by 2.19%.
The fall in prices has fueled a domino effect, accentuating liquidations and losses for investors who have taken bullish positions. On the technical level, the loss of the $56,000 support for Bitcoin could pave the way for a new wave of corrections. Let's keep a cool head, while the price of BTC has fallen below $55,000. Case to follow, on the Journal du Coin.
