Bitcoin Plunges Below $83,000 As Fear Index Hits Lowest After FTX Collapse
Highlights
- Bitcoin price has dropped below $83,000, marking a 25% decline since its January 20 peak.
- The BTC fear and greed index plummeted to 10, lower than during the FTX collapse, as panic selling drives the market.
- Yesterday saw $1.3 billion worth of BTC deposited to exchanges, reflecting heightened trader anxiety.
- Market veterans continue to support BTC saying corrections of 30% or more are common in bull cycles.
Amid strong selling pressure, Bitcoin price took a dive under $83,000 earlier today with the BTC fear and greed index hitting its lowest level since the FTX collapse. Following a 13% correction on the weekly chart, market analysts have cautioned investors not to panic sell their holdings as extreme fear conditions could set the stage for an upward momentum ahead.
Bitcoin In Extreme Fear Condition Amid Panic Selling
With today’s fall under $83,000, BTC has extended its weekly losses to more than 12.66% with a large number of investors facing conditions of panic selling. The Bitcoin fear and greed index has dropped to 10, even lower than the FTX collapse in November 2022.
With today’s fall, Bitcoin price is currently testing its 200-day moving average (DMA) with the Relative Strength Index (RSI) falling in oversold territory. Analysts suggest this creates an ideal setup for BTC to regain momentum and stage a potential rebound.
As of press time, the BTC price is trading 3.8% down at $85,318 with its daily trading volumes crashing 17% to $68 billion. As per the Coinglass data, the BTC futures open interest has dropped by 6.3% to $53.6 billion while the 24-hour liquidations have soared to $460 million, of which $390.88M is in long liquidation.
Bitcoin deposits to exchanges surged to $1.3 billion yesterday, signaling rising market anxiety. The significant inflow reflects a wave of traders looking to offload their positions, potentially driven by fears of further price declines or heightened volatility.
BTC Is On Sale Says Robert Kiyosaki
Veteran Investor Robert Kiyosaki said that the current Bitcoin price crash presents a buying opportunity for investors. Kiyosaki emphasized his confidence in BTC despite its volatility, blaming systemic issues in the global monetary system for broader economic instability.
While reinforcing his belief in the asset class, Kiyosaki said that BTC is “money with integrity”. He criticized the U.S. monetary system and its mounting debt, highlighting the risks posed by unsustainable obligations such as Medicare, Social Security, and a $36 trillion federal debt.
“When Bitcoin crashes, I smile and buy more,” he added, positioning BTC, alongside gold and silver, as a hedge against what he called “fake money” and the failures of traditional financial systems.
Trade War Concerns Drag Bitcoin Down
Soon after President Donald Trump announced 25% tariffs on the European Union, the S&P 500 wiped out $500 billion from the market in a short moment. Bitcoin has extended its decline, falling below $83,000 for the first time in 15 weeks as trade war fears weigh on investor sentiment. As a result, fear among investors has dropped even below that of FTX collapse.
The cryptocurrency is now down 25% from its January 20th peak. However, market experts continue to remain bullish about it. CryptoQuant founder and CEO Ki Young Ju stated:
“If you’re panic selling now, you’re probably a noob. A 30% correction in a Bitcoin bull cycle is common—it dropped 53% in 2021 and still recovered to an ATH. Buying when prices rise and selling when they fall is the worst investment strategy. Invest with a clear plan”.
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