Bitcoin Edges Higher, ETH Rebounds Above $4K as Sentiment Slips Into 'Fear' Territory
Bitcoin (BTC) is witnessing a slight uptick above $110,000, with Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) also making gains. The recent bounce in crypto prices follows the PCE inflation data for August, which rose by 2.7% year-over-year, aligning with predictions and suggesting that inflation may be stabilizing. However, the overall sentiment in the crypto market remains weak, with the Fear & Greed Index dropping to 28, indicating fear among traders—the lowest level since mid-April. Approximately $3 billion of leveraged long positions have been liquidated recently, creating a bearish market sentiment. Some analysts indicate that this may lead to a potential short squeeze due to the extreme bearish positioning, while others caution that Bitcoin fell below its 100-day moving average and could drift lower in the coming weeks, potentially questioning whether prices will revisit record highs in 2025.
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