Crypto Market Plunges as Fear Overtakes Greed
On August 17, the crypto market experienced a significant downturn, triggered by Bitcoin’s plunge to a new low of under $28,500. This decline coincided with a shift in investor sentiment, as ‘fear’ replaced ‘greed’ as the prevailing emotion. The Crypto Fear and Greed Indicator displayed a fear rating of ’50 Fear,’ compared to ’52 Greed’ the previous day. Despite the bearish sentiment, crypto trading volume increased by over 10% to $44.5 billion.
Key Points:
- Crypto market sentiment shifted from greed to fear
- Bitcoin’s price decline led to negative market sentiment
- Bitcoin futures liquidations contributed to the downturn
- Altcoins, including Ethereum, Binance Coin, and XRP, also experienced losses
- Sei, Conflux, and Shiba Inu recorded the largest declines
Bitcoin’s latest price decline was a primary factor in the negative market sentiment. The crypto asset was trading down over 2% at $28,558, briefly dropping to $28,428 before recovering. The Bitcoin futures market also played a role, with significant liquidations of long positions. The reduced liquidity in the market increased Bitcoin’s susceptibility to volatile price swings. Other cryptocurrencies, such as Ethereum, Binance Coin, and XRP, also suffered losses. In particular, Ethereum fell below its key support level of $1,800. Sei, Conflux, and Shiba Inu experienced the largest declines, with SHIB’s drop attributed to issues with the Shibarium upgrade.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
Hot Take: The recent downturn in the crypto market highlights the influence of investor sentiment on cryptocurrency prices. Fear has now taken over from greed, leading to a significant drop in Bitcoin’s price and affecting other cryptocurrencies as well. The liquidation of Bitcoin futures positions has further contributed to the market decline. It remains to be seen whether this bearish sentiment will continue or if the market will regain its momentum.
By
By
By
By
By
By