Bitcoin currently trades below the $24,000 mark for the first time since December, 2022 as the crypto Fear and Greed Index dumped from 14 to 11 within 24 hours, indicating “extreme fear”.
Is Crypto Winter Over?
Investors are overwhelmed with a sense of uncertainty as the firstborn crypto dips below $24,000 for the first time in almost two years. From a Coinmarketcap chart, the asset saw a low of $23,600 today after trading between $28k and $38k since early-May.
The current crypto winter has been a tough one for most digital assets and Bitcoin has not been spared. In the wake of uncertainties revolving around the Terra crisis and other stablecoins like Tron’s USDD slightly losing their peg to the dollar, investors are left to wonder where the market would head next.
With the crypto Fear and Greed Index getting below 12 as at press time, some investors seem to be capitulating to cash in on whatever crumbs they can get from their funds. On the other hand, on-chain indicators seem to be looking pretty good, according to data analytics platform CryptoQuant.
Per data from CryptoQuant, Bitcoin’s Binary CDD indicates a low long-term holders’ movement, showing that long-term holders of the asset are currently not capitulating. Additionally, the Exchange Reserve of Bitcoin has decreased recently, showing a low selling pressure despite the current bear market plaguing the asset.
Crypto market is not the only troubled by growing concerns
The Sentiment behind the asset, however, seems to represent a negative reception, according to CryptoQuant. There is currently a low U.S. investors buying pressure on the asset with regard to CryptoQuant’s Coinbase Premium indicator. With a FGI value of 9 last month, it is not out of place to agree with this sentiment data.
While BTC has dipped by 24% in the past 7 days and ETH by 37% within the same timeframe, the crypto market is not the only financial scene troubled by developing concerns. Just recently, the U.S. inflation rate peaked at 8.6% in May per multiple reports. This was the highest in about 40 years.
A survey of 337 U.S companies in May by Pearl Myer indicated that a third of these companies had plans underway to provide mid-year increase in employees’ salaries in response to the growing inflation – one that has persisted despite the Federal Reserve increasing benchmark interest rate by half a percentage point.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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