The Crypto Fear and Greed Index, a gauge that tracks market sentiment towards Bitcoin and cryptocurrencies, fell to “extreme fear,” its lowest level since January 2023.
The sharp drop came as the price of Bitcoin (BTC) failed to break above the $60,000 mark for the second time in the past 48 hours.
July 11 post On X, crypto and forex trader Justin Bennett told his 111,000 followers that Bitcoin price levels had “yet again” rejected the $60,000 mark, pointing to the formation of an “ascending wedge” that could signal further declines in the coming days.
Bitcoin rose to $59,485 on July 10, but then fell to $57,000 in the next 12 hours. It briefly rose again to $59,529 on July 11, but was unable to sustain that level.
Bitcoin was trading at $57,499 at the time of writing, down 23% from its all-time high hit on March 14. according to To TradingView data.
Why does Bitcoin price remain low?
Recent negative feelings: The news is that Mt. Gox will begin repaying its creditors from July 5th, which could result in up to $8.5 billion worth of Bitcoin being released onto the market.
Additionally, much of Bitcoin’s price decline is linked to large-scale selling by the German government, which transferred 16,254 BTC (worth $935 million at current prices) to market makers and exchanges in recent days. according to To Arkham Intelligence Data.
Related: Bitcoin price CPI increase lasts only an hour as concerns over Mt. Gox sell-off remain
The Crypto Fear and Greed Index takes into account market volatility (25%), trading volume (25%), Bitcoin dominance (10%) and trends (10%). The index also previously considered market research with a 15% weighting, but that metric has been suspended.
Bitcoin’s index score has been trending consistently downward since recording an “extreme greed” score of 90 on March 5, when it surpassed its all-time high of $69,000 recorded in November 2021.
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