đ„đ„đ„ #bitcoinâïž falls to âextreme fearâ on Aug. 5 as #ETFsâ outflow $168M
Crypto Market Sentiment Plummets to Extreme Fear Amid
Bitcoin ETF Outflows
- The Crypto Fear & Greed Index has dropped to "Extreme Fear" for the first time in two years, reaching a score of 17 on August 5. This coincides with significant outflows from U.S. spot Bitcoin ETFs, totaling $168.4 million. Notably, the Grayscale Bitcoin Trust and ARK 21Shares #BitcoinETFđ°đ°đ° saw outflows of $69.1 million and $69 million, respectively.
Market Sentiment and ETF Outflows:
1. Outflows: Major outflows from Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF.
2. Inflows: Grayscale Bitcoin Mini Trust, VanEck Bitcoin ETF, and Bitwise Bitcoin ETF saw inflows of $21.8 million, $3 million, and $2.9 million, respectively. BlackRockâs iShares Bitcoin Trust remained unchanged.
3. #EtherETFs : Spot Ether ETFs had inflows of $48.8 million, led by iShares Ethereum Trust with $47.1 million.
Market Reaction:
- The sentiment shift followed a sharp drop in Bitcoin and Ether prices, which fell 10% and 18%, respectively, on August 5, causing over $600 million in leveraged long positions to be liquidated. The U.S. stock market also declined due to weak employment data, tech stock growth slowdowns, and recession fears, erasing over $500 billion from the crypto market cap in three days.
Market Outlook:
- Bitcoin analyst Tuur Demeester predicts Bitcoin could bottom between $40,000 and $45,000 but warns against bearish bets during a bull market due to potential rapid rebounds. Bitcoin showed some recovery, climbing 11.85% to $55,680 after hitting a low of $49,780 on August 5.
Conclusion:
The Crypto Fear & Greed Index's drop to "Extreme Fear" highlights market anxiety amid significant ETF outflows and broader financial turbulence. Investors remain cautious about the near-term outlook but are monitoring potential recovery signals.
Source - cointelegraph.com
