Bitcoin (BTC) Trades Below $24k, Fear And Greed Index Hits 11

Abigal Vee
June 13, 2022
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Bitcoin currently trades below the $24,000 mark for the first time since December, 2022 as the crypto Fear and Greed Index dumped from 14 to 11 within 24 hours, indicating “extreme fear”.

Advertisement
Advertisement

Is Crypto Winter Over?

Investors are overwhelmed with a sense of uncertainty as the firstborn crypto dips below $24,000 for the first time in almost two years. From a Coinmarketcap chart, the asset saw a low of $23,600 today after trading between $28k and $38k since early-May.

The current crypto winter has been a tough one for most digital assets and Bitcoin has not been spared. In the wake of uncertainties revolving around the Terra crisis and other stablecoins like Tron’s USDD slightly losing their peg to the dollar, investors are left to wonder where the market would head next.

With the crypto Fear and Greed Index getting below 12 as at press time, some investors seem to be capitulating to cash in on whatever crumbs they can get from their funds. On the other hand, on-chain indicators seem to be looking pretty good, according to data analytics platform CryptoQuant.

Per data from CryptoQuant, Bitcoin’s Binary CDD indicates a low long-term holders’ movement, showing that long-term holders of the asset are currently not capitulating. Additionally, the Exchange Reserve of Bitcoin has decreased recently, showing a low selling pressure despite the current bear market plaguing the asset.

Advertisement
Advertisement

Crypto market is not the only troubled by growing concerns

The Sentiment behind the asset, however, seems to represent a negative reception, according to CryptoQuant. There is currently a low U.S. investors buying pressure on the asset with regard to CryptoQuant’s Coinbase Premium indicator. With a FGI value of 9 last month, it is not out of place to agree with this sentiment data.

While BTC has dipped by 24% in the past 7 days and ETH by 37% within the same timeframe, the crypto market is not the only financial scene troubled by developing concerns. Just recently, the U.S. inflation rate peaked at 8.6% in May per multiple reports. This was the highest in about 40 years.

A survey of 337 U.S companies in May by Pearl Myer indicated that a third of these companies had plans underway to provide mid-year increase in employees’ salaries in response to the growing inflation – one that has persisted despite the Federal Reserve increasing benchmark interest rate by half a percentage point.

 

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Abigal .V. is a cryptocurrency writer with over 4-years of writing experience. She focuses on news writing, and is skilled in sourcing hot topics. She’s a fan of cryptocurrencies and NFTs.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.