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Bitcoin Traders Succumb to ‘Extreme Fear’
Alex Dobnya
Bitcoin has repeatedly failed to reclaim the $60,000 level
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The Fear and Greed Index, a popular indicator of Bitcoin sentiment, is now absorbed in the territory of “extreme greed” with 25 points out of 100.
This is the first time in 18 months that the index has recorded such an extremely low value.
The last time this happened, the cryptocurrency market was still trying to recover from the shocking crash of the FTX exchange.
Now, the cryptocurrency market has been hit by Mt. Gox refunds and a series of non-stop sell-offs by the German state of Saxony.
The leading cryptocurrency rose to $59,516 on Thursday as weaker-than-expected US inflation data put hopes of multiple rate cuts this year into question.
However, Bitcoin’s attempt to break above the $60,000 resistance level proved to be a failure.
The cryptocurrency has been hit by another major sell-off from Saxony. On Thursday, it sent another $286 million in BTC to various trading platforms. The good news? The state has almost no Bitcoin left to sell. It now holds less than 10% of the coins that were originally confiscated from the Movie2k website in January.
A steady stream of inflows into Bitcoin exchange-traded funds (ETFs) is likely to lift current sentiment. These products saw nearly $79 million in fresh money on Thursday, with BlackRock’s IBIT accounting for the vast majority of the sum.
At the time of writing, Bitcoin is trading at $57,246, according to CoinGecko data.
About the author
Alex Dobnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything from price analysis to Blockchain disruption. Alex has written over 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets, and can be reached at alex.dovbnya@u.today.