Bitcoin Sentiment Falls to Extreme Fear
08 Aug, 2024 ● Crypto News
The Crypto Fear & Greed Index has entered the “Extreme Fear” zone for the first time in two years, as United States spot Bitcoin exchange-traded funds (ETFs) reported outflows of $168.4 million on Aug. 5.
This index, which gauges market sentiment for Bitcoin and the broader cryptocurrency market, fell to a score of 17 out of 100 on Aug. 5 — its lowest since July 12, 2022.
On July 29, the index score was 67, marking one of the most significant week-to-week declines in recent years.
The majority came from the Grayscale Bitcoin Trust and the ARK 21Shares Bitcoin ETF, which saw outflows of $69.1 million and $69 million, respectively, according to Farside Investors data.
Meanwhile, the Grayscale Bitcoin Mini Trust, VanEck Bitcoin ETF, and Bitwise Bitcoin ETF recorded inflows of $21.8 million, $3 million, and $2.9 million, respectively, while BlackRock’s iShares Bitcoin Trust reported no activity.
However, spot Ether (ETH) ETFs saw $48.8 million in inflows, led by BlackRock’s iShares Ethereum Trust at $47.1 million, according to Farside Investors.
VanEck and Fidelity’s Ether products also saw inflows of $16.6 million and $16.2 million, respectively.
Sentiment worsened when Bitcoin and Ether dropped 10% and 18% within a two-hour window on Aug. 5.
Over $600 million in leveraged long positions were liquidated, including many altcoins that were hit even harder than Bitcoin and Ether.
Trillions of dollars were also wiped from the US stock market on Aug. 5.
The market downturn was driven by weak employment data, slowed growth among major tech stocks, and renewed recession fears.
Independent trader Bob Loukas described the past three days as a once-in-seven-to-10-year event, which saw more than $500 billion wiped from the crypto market cap.
Bitcoin analyst Tuur Demeester believes Bitcoin could bottom somewhere between $40,000 and $45,000 but cautioned against betting on it:
“In a Bitcoin bull market you don’t take bearish bets because prices can whipsaw back up in no time.”
Sources:
https://cointelegraph.com/news/bitcoin-extreme-fear-etfs-168-million-outflows
https://alternative.me/crypto/fear-and-greed-index/
