Why Crypto Market is Down Today? Fear and Greed Index Signals Extreme Caution

After the crypto market struggled to take care of a bullish restoration in current weeks following the August 5 crash, the worth of Bitcoin (BTC) led the altcoin sector to vital losses on Friday. Over the previous two days, Bitcoin worth has constantly closed beneath the essential assist stage above $57,000, indicating that the bears are in management.

In keeping with the newest market information, Bitcoin worth has fallen by greater than 5 % over the previous 24 hours to achieve a day by day low of round $52,690.

Nonetheless, the flagship coin had risen above $53,800 throughout the early Asian session on Saturday.

The whole crypto market capitalization fell beneath $2 trillion, following the pressured liquidation of almost $300 million.

Main forces placing strain on the crypto bullish outlook

September Bearish Chronicles

Amid elevated fears of bearish sentiment within the coming weeks, Bitcoin worth led the altcoin business to vital losses over the previous two days. The crypto business adopted main inventory indexes in bearish sentiment regardless of rising requires charge cuts on September 18.

Bitcoin’s worry and greed index fell to round 23 % at the moment, indicating excessive worry amongst merchants.

Most analysts imagine that the losses might proceed within the brief time period, with the Bitcoin worth anticipated to fall beneath $50,000.

The sell-off of the rising whales

In keeping with on-chain information evaluation, whale buyers have elevated promoting strain in current weeks. For instance, Wintermute has deposited almost 47,000 ether, price greater than $104 million, on the Binance alternate prior to now 24 hours.

As for Bitcoin, buyers who purchased between $47,000 and $64,000 are feeling the strain, with solely 27.6 % of them presently making a revenue. On Friday, an enormous whale deposited 1,000 BTCs, price about $55 million, at a loss to Binance.

Poor efficiency in Spot Ether and BTC ETFs

Over the previous week, the US-based spot Bitcoin and Ether ETFs have bled closely. In keeping with the newest market information, US spot Bitcoin ETFs have recorded internet money outflows of virtually $1 billion, led by Constancy’s FBTC.

As for the spot Ether ETFs, they’ve recorded adverse money flows for the previous 4 consecutive weeks.