Why Is Crypto Down Today: Market Slips Into ‘Extreme Fear’ After BTC Fails to Hold $100,000
The cryptocurrency market has entered a state of 'extreme fear,' with the Fear & Greed Index plummeting to 10, its lowest point since February. Recent losses across major cryptocurrencies have led to Bitcoin trading just below $96,000, a significant drop from its all-time high of over $120,000. The overall market value has decreased by approximately 5.8% over the past week. Factors contributing to this downturn include profit-taking by long-term holders, institutional outflows, macroeconomic uncertainties, and low liquidity. The market sentiment has shifted downward after a long period of consolidation, and there are growing concerns regarding potential interest rate changes by the Federal Reserve. Recent economic indicators' delays have further complicated the trading environment, leading to reduced macro data availability. Additionally, low liquidity stemming from the previous month’s crash remains an ongoing issue, making the market vulnerable to more volatility.
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