Greed

Bitcoin

Spot

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-faces-extreme-fear-again" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Faces Extreme Fear Again</a><br></p>
<p style="text-align: justify"><a href="https://en.bitcoinhaber.net/analyst-predicts-bitcoins-long-term-price-surge" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) recently plunged into the “extreme fear” zone on the Fear and Greed Index, scoring 25 out of 100. This marks the lowest level for the index in 18 months, a drop last seen during the recovery phase following the FTX exchange’s collapse. The index is a widely recognized sentiment indicator in the crypto market, and such a low score suggests heightened anxiety among investors.</p>
<h2 id="why-are-mt-gox-and-the-german-government-causing-fear">Why Are Mt. Gox and the German Government Causing Fear?</h2>
<p style="text-align: justify">The primary contributors to the current market turmoil are repayments from the Mt. Gox exchange and the German government’s ongoing sale of 50,000 BTC seized earlier this year. These actions have led to substantial price volatility and have dragged the Fear and Greed Index down to 25, indicating significant apprehension within the market.</p>
<p style="text-align: justify">Bitcoin’s price surged to $59,516 on July 11, fueled by lower-than-expected US inflation <a href="https://newslinker.co/category/ai/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data</a>, which boosted hopes for multiple <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">interest rate</a> cuts this year. However, the rally was short-lived as BTC faced stiff resistance at the $60,000 level and subsequently began to decline.</p>
<h2 id="how-is-the-german-government-s-bitcoin-sale-impacting-prices">How Is the German Government’s Bitcoin Sale Impacting Prices?</h2>
<p style="text-align: justify">The German government has been a significant selling force, offloading BTC worth $286 million onto various trading platforms on July 11. The sale added considerable downward pressure on Bitcoin’s price, with an additional 2,700 BTC sent to exchanges early today, further exacerbating the decline.</p>
<h2 id="can-spot-bitcoin-etfs-alleviate-market-pressure">Can Spot Bitcoin ETFs Alleviate Market Pressure?</h2>
<p style="text-align: justify">In the midst of this selling pressure, spot Bitcoin exchange-traded funds (ETFs) in the US have seen increased inflows. On July 11, new inflows totaling $79 million were reported, primarily benefiting BlackRock’s spot ETF, IBIT. This capital influx into ETFs could provide some support against the prevailing market stress.</p>
<h5>Practical Insights</h5>
<ul>
 <li>Monitor the Fear and Greed Index for sentiment trends.</li>
 <li>Understand the influence of institutional actions like government BTC sales.</li>
 <li>Consider the potential stabilizing effect of increased ETF inflows.</li>
</ul>
<p style="text-align: justify">At the time of writing, Bitcoin was trading around $57,000, according to CoinMarketCap data. Investors continue to navigate the volatility, closely watching for any further developments that could impact the market.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-faces-extreme-fear-again" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Faces Extreme Fear Again</a></h5>

Bitcoin Faces Extreme Fear Again

Table of Contents

BH NEWS

Other articles published on Jul 12, 2024

Legendary Bitcoin Trader Peter Brandt Issues Must-Know ETF Insight

Joe Biden doubles down on election victory plans in bizarre speech

Become a Collator Operator for Integritee Network!

Germany has 9K Bitcoin left just 3 weeks after it started selling

The Significance of 6400 ETH Secured in Beacon Chain by Ethereum Holders

Stellar Price ‘Wakes Up’: Will XLM Follow XRP’s Path?

Join our free newsletter for daily crypto updates!