Bitcoin’s Fear & Greed Index Drops to 17 Amid Market Slump

Japanese markets impacted Bitcoin over the weekend and flowed into Monday as Wall Street opened. According to data from CoinMarketCap, Bitcoin was traded at $49,200 yesterday. There are wars and fears of World War III breaking out. US markets have panicked, and some traders have lost faith in the market.

Bitcoin traders are “extremely fearful”

According to data from Alternative.me, Bitcoin’s Fear and Greed index stands at 17, showing an “Extreme Fear” sentiment. According to CoinGecko, Bitcoin (BTC) is now worth $55,239, up 7.0% from yesterday. 

The second largest crypto, Ethereum (ETH), is worth $2,460.54 today, up 6.7% from yesterday. The global crypto market cap has regained a $2 trillion market share and is currently worth  $2.04 trillion, up 8.15% in the last 24 hours.

Yesterday, crypto traders were liquidated for $1.2 billion. However, that number is low today. According to data from Coinglass, 90,041 traders were liquidated in the last 24 hours, for a total of $363.66 million. The largest single liquidation order happened on Binance for  ETH/USDT, valued at $13.42M.

Crypto markets have hit a six-month low, but analysts are already forecasting a recovery. On August 6, MN Consultancy founder Michaël van de Popp wrote on X, “This correction today can ultimately lead to the bear trap of this cycle. Massive capitulation – causing $1.2 billion people to be wiped out of the markets through leveraged positions. Good recovery over the day, a lot of work to do.”

As the market recovers, new geopolitical tensions have taken form in the Middle East. Hezbollah has launched drone attacks on northern Israel. Iran and Hezbollah had already confirmed retaliation against Israel within 24 to 48 hours. 

Following the assassination of Hamas leader Ismail Haniyeh, investors have become wary of the possibility of further attacks on Israel. Today, Israel posted on X “Rocket sirens sound across northern Israel as Hezbollah terrorists attack Israeli communities with explosive drones.”

As Jim Cramer said, “Lotta damage done by this selloff; can’t expect a quick bounce back…”

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