CDS Crypto News The Reason for the Bitcoin Index Decline: BTC Fails to Break $60K
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The Reason for the Bitcoin Index Decline: BTC Fails to Break $60K

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The Reason For The Bitcoin Index Decline Btc Fails To Break $60K

Market Analysis: Bitcoin Index Falls to Extreme Fear Status

Market Analysis: Bitcoin Index Falls To Extreme Fear Status

An indicator of market sentiment toward Bitcoin and other cryptocurrencies, the Crypto Fear & Greed Index, has dropped to extreme fear, the lowest level since January 2023. The steep decline in value was caused by the fact that, for the second time in the previous 48 hours, the Bitcoin price could not cross $60,000.

  • The Crypto Fear & Greed Index takes into account trends (10%), market volatility (25%), trade volume (25%), and the dominance of Bitcoin (10%).
  • Prior to being suspended, the index also took market polls into account, giving them a 15% weight.

Crypto and FX trader Justin Bennett stated that the Bitcoin price level had rejected $60,000 yet again in a post on July 11 on X. Bennett also mentioned the emergence of a possible rising wedge, which indicates that there may be more declines ahead. Before plunging back down to $57,000 in the next 12 hours, Bitcoin saw a surge as high as $59,485 on July 10. Though it did not stay there, Bitcoin experienced a brief increase to $59,529 on July 11.

Market Analysis Bitcoin Index Falls To Extreme Fear Status

Why Is Bitcoin’s Price Falling?

The recent negative feeling can be traced to reports that Mt. Gox has begun repaying its creditors since July 5, which might cause up to $8.5 billion worth of Bitcoin to be released onto the market. Furthermore, according to Arkham intelligence data, the German government has been selling substantial amounts of Bitcoin (around $935 million at current levels) to market makers and exchanges in recent days. This has contributed significantly to the downward price movement of the cryptocurrency.

FAQ

What Does a Period of Extreme Fear Mean for Bitcoin Traders?

The extreme fear period refers to a period when traders are cautious due to uncertainty and risks in the market, and there is often increased selling pressure. During this period, market sentiment is low, and prices are generally bearish.

Why do Bitcoin Prices Fluctuate?

Bitcoin prices fluctuate depending on the balance of supply and demand, market news, regulatory changes, and general economic conditions. Cryptocurrency markets can be more volatile than traditional financial markets.

What Factors Affect the Bitcoin Fear Index?

Factors that influence the Bitcoin fear index include market volatility, news flow, investor sentiment, and general economic conditions. Large price fluctuations and negative news can negatively affect the index.

For more up-to-date crypto news, you can follow Crypto Data Space.

The Reason For The Bitcoin Index Decline: Btc Fails To Break $60K
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lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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