Bitcoin Sentiment Hits 2022 Lows as Concern & Greed Index Falls to 10

The Bitcoin Concern & Greed Index has plummeted to 10, its lowest stage since June 2022, signaling excessive concern amongst buyers.

Regardless of the panic, specialists recommend this might be a first-rate second to purchase.

Sentiment Crashes as BTC Worth Falls

The index, which measures market sentiment, fell from 49 final week, thought of impartial, to 10 at this time, signifying excessive concern. In response to Various.me, which publishes the metric, excessive concern is commonly a sign that buyers are overly involved concerning the goings-on available in the market, which may current a shopping for alternative.

Nonetheless, analysts stay divided; whereas some have referenced historic knowledge displaying excessive concern typically precedes rebounds, others, like BitMEX co-founder Arthur Hayes, have cautioned that Bitcoin, the biggest cryptocurrency by market capitalization, may drop to as little as $70,000 earlier than stabilizing.

The continued turmoil has seen the worth of BTC tumble from practically $99,000 final week to beneath $84,000, a three-month low. Whereas it’s buying and selling at slightly below $86,000 on the time of this writing, the asset’s latest poor type dragged the broader crypto market into the crimson, erasing months of positive aspects, with altcoins like Ethereum, Solana, and BNB equally bleeding and pushing merchants into panic mode.

The downturn noticed the sector’s general worth dip beneath $3 trillion, shedding at the very least $200 billion in simply sooner or later. Liquidations have additionally surged, with greater than $1 billion in leveraged positions worn out over the identical interval.

Presently, crypto’s market cap is at $2.95 trillion, down 4.3% within the final 24 hours. Moreover, BTC’s dominance has risen to 57.6%, suggesting a shift away from riskier altcoins.

What’s Driving the Concern?

Specialists have pointed to elements like escalating tensions between america and a few of its key commerce companions, together with Canada, Mexico, and China, as a key contributor to the downturn. The deadlock was a results of U.S. President Donald Trump asserting new tariffs on items sourced from the three nations.

As well as, the President has threatened to impose a 25% tax on imports from the European Union (EU), claiming the bloc was created to “screw” america.

Moreover, the nation’s spot Bitcoin ETF sector has seen large outflows, with a document $938 million withdrawn in a single day. This obvious lack of institutional confidence has additional fueled the sell-off.