Bitcoin and the cryptocurrency sector’s market sentiment indicator, the Crypto Fear and Greed Index, has dropped to its lowest level of extreme fear since January last year. The falling index score came as Bitcoin price failed to surpass $60,000 for the second time in 48 hours.
What’s Happening with Bitcoin?
Crypto analyst Justin Bennett told his 111,000 followers on July 11 via X that Bitcoin’s price level once again rejected the $60,000 level and pointed to a potential rising wedge formation indicating further declines in the coming days.
Bitcoin rose to $59,485 on July 10 and fell to $57,000 within the next 12 hours. On July 11, Bitcoin briefly rose to $59,529 again but failed to hold at this level. According to TradingView data, Bitcoin is currently trading at $57,499, a 23% drop from its all-time high seen on March 14 this year.
Details on the Matter
Recent negative sentiments are linked to the news that Mt. Gox started repaying creditors from July 5, potentially releasing $8.5 billion worth of Bitcoin into the market. Additionally, a significant portion of Bitcoin’s downward price movement is connected to potential large sales by the German Government, which transferred 16,254 Bitcoin (worth $935 million at current prices) to market makers and exchanges in the last 24 hours, according to blockchain data analysis platform Arkham.
The Crypto Fear and Greed Index affects market volatility (25%), trading volume (25%), Bitcoin’s dominance (10%), and trends (10%). The index used to account for market surveys with a 15% weight, but this data has been paused.
Bitcoin’s index score has shown a consistent downward trend since it achieved a score of 90 extreme greed on March 5, when Bitcoin surpassed its all-time high price of $69,000 set in November 2021. Following these developments and the selling pressure on Bitcoin, investors‘ asset sales accelerated, negatively impacting various data points.
