🔥🔥🔥 Why Crypto Market is Down Today? Fear and Greed Index Signals Extreme Caution
Bitcoin Leads Crypto Market Decline Amid Bearish Sentiment
- After struggling to maintain a bullish recovery following the August 5 crash, Bitcoin ($BTC ) has led the altcoin sector into notable losses. Over the past two days, Bitcoin consistently closed below the critical $57,000 support level, signaling that bears are in control.
- In the last 24 hours, Bitcoin dropped over 5%, hitting a daily low of around $52,690 before rebounding above $53,800 on Saturday during the early Asian session. The total crypto market cap fell below $2 trillion following the forced liquidation of nearly $300 million.
Key Factors Driving the Crypto Market Down
Bearish Momentum in September
- Bitcoin's decline has led the broader #Altcoinmarket lower, mirroring bearish trends in major stock indexes despite rising calls for interest rate cuts on September 18. The fear & greed index for Bitcoin dropped to 23%, indicating extreme fear among traders.
- Most analysts expect further losses in the near term, with Bitcoin potentially falling below $50,000.
Whale Selloffs Increase Pressure
- On-chain data shows a rise in selloffs from whale investors in recent weeks. Wintermute, for example, deposited nearly 47,000 Ether, worth over $104 million, to Binance in the last 24 hours. Meanwhile, a major Bitcoin whale transferred 1,000 BTC (around $55 million) to Binance at a loss. Only 27.6% of Bitcoin holders who bought between $47,000 & $64,000 are currently in profit, adding to selling pressure.
Poor Performance of Spot Bitcoin & Ether ETFs
- Spot Bitcoin & Ether ETFs in the United States have faced significant outflows. U.S.-based spot Bitcoin ETFs have seen nearly $1 billion in net cash outflows, with Fidelity's FBTC leading the way. Spot Ether ETFs have also recorded negative cash flows for four consecutive weeks.
- As market sentiment remains bearish, traders are preparing for potential further declines across the crypto sector.
Source - coinpedia.org
