Crypto Fear And Greed Index Plummets To Lowest Level Since January 2023 As BTC Slumps To $55K

Updated: 08 July 2024

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The Crypto Fear and Greed Index plunged to its lowest point since January 2023 as market sentiment soured and Bitcoin struggled to keep the $55k support.

Investors panic sold their crypto holdings in the past 24 hours, with Bitcoin briefly falling below $55K. Although the crypto king was able to recover to trade at $55,739.37 as of 3:35 a.m. EST, it remained in the red by more than 2%.

Spot Bitcoin ETF Investors Unfazed As Crypto Fear And Greed Index Plunges To 28

BTC reached an all-time high of $73,750.07 in March, which led to the Fear and Greed Index presenting a sell signal. This signal has since been validated, with the Bitcoin price down more than 24% from its new peak.

Based on trading activity it looks like #BitcoinETF buyers are still HODLing. So far there's no sign of panic. It will likely take a much larger drop in #Bitcoin before they finally capitulate. That may come as soon as next week, especially after another big selloff this weekend.

— Peter Schiff (@PeterSchiff) July 5, 2024

The drop in BTC’s price seems to have been identified as a buying opportunity by spot Bitcoin ETF (exchange-traded fund) investors. Peter Schiff, the Chief Economist and Global Strategist at Euro Pacific Asset Management, said in a July 5 post on X that trading activity suggests “Bitcoin ETF buyers are still HODLing.”

Bloomberg ETF analyst James Seyffart also commented on recent ETF trading activity in a July 6 X post. “Bitcoin ETFs doing the exact opposite of “dumping” in the first ~20% drawdown since launch,” Seyffart said while quoting a post by Bitwise CEO Hunter Horsley.

Bitcoin ETFs doing the exact opposite of “dumping” in the first ~20% drawdown since launch https://t.co/bh4dyKzOft

— James Seyffart (@JSeyff) July 6, 2024

Mt. Gox Repayments Could Lead To BTC Dropping To $50K

One key factor behind the extreme fear in the crypto market might be the anticipated unloading of seized BTC by German and U.S. Governments. Additionally, investors are pre-emptively selling their holdings to avoid getting caught in the potential sell off by Mt. Gox investors, SynFutures CEO Rachel Lin said in a market update.

10x Research founder Markus Thielen believes the Mt. Gox repayments could lead to a lot of selling pressure being exerted on BTC. He went on to predict that the leading crypto could drop to $50K as a result.