Bitcoin Drops to $55.75K as Arthur Hayes Predicts Further Decline Below $50K

The Crypto Fear and Greed Index has dropped to a score of 22, indicating “extreme fear” as of Sept. 6, 2024. This shift in sentiment follows recent price declines

The Crypto Fear and Greed Index shifted to a score of 22, indicating “extreme fear,” as of Sept. 6, 2024. This development followed recent price declines in the cryptocurrency market, particularly Bitcoin’s fall below $56,000.

Bitcoin Drops to $55.75K as Arthur Hayes Predicts Further Decline Below $50K

Bitcoin’s drop to $55,748 on Monday was a key factor contributing to the Crypto Fear and Greed Index’s fearful scenario. The price had earlier hit $58,000 during the week, before experiencing a significant decline.

Adding to the concerns, BitMEX co-founder Arthur Hayes predicted that the BTC price might drop below $50,000 over the weekend.

Another aspect affecting the market was the U.S. jobs data released on Sept. 5. The report showed numbers lower than expected, increasing uncertainty about a potential interest rate cut by the Federal Reserve. This had an effect of adding further downside pressure on the cryptocurrency market.

Crypto Market Sees Major Liquidations as BTC Leads with $36.71M in Sell-Offs

The Crypto Fear and Greed Index’s entry into the “extreme fear” stage had an impact on other major cryptocurrencies as well. Ethereum (ETH), Solana (SOL), and XRP experienced price drops of 2.23%, 2.82%, and 2.19%, respectively.

These drops led to substantial liquidations, particularly among traders who held long positions. According to data from CoinGlass, over $71 million worth of long positions were liquidated within 24 hours.

Of these liquidations, Bitcoin accounted for $36.71 million. The sell-offs created additional downward pressure on the market.

The Crypto Fear and Greed Index is often viewed as a gauge of market sentiment. When fear is high, some investors may identify potential buying opportunities. The index can serve as an indication of market uncertainty, but the inherently unpredictable nature of the cryptocurrency market makes any outcome far from guaranteed.

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