Fear And Greed Index Plunges to Lowest Since January 2023 As JPMorgan Predicts Crypto Market Recovery in August

On Jul 12, 2024

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The Crypto Fear and Greed Index plunged to its lowest level since January 2023, but JPMorgan sees light at the end of the tunnel, predicting a crypto market rebound next month

The index, which tracks market sentiment towards Bitcoin (BTC) and other cryptos, has plummeted to 25 as of 2:45 a.m. EST to indicate “extreme fear” among investors. This comes after the flagship crypto failed to break above the psychological $60K resistance level for the second time in the past 48 hours.

Fear And Greed Index Could Be Accompanied By A Bearish Chart Pattern Soon

Crypto and forex trader Justin Bennet shared with his 11,000 followers that the $60K mark rejected Bitcoin “yet again” in a July 11 post on X. He added that a “rising wedge” could start to form as a result, which might foreshadow further downside in the next few days.

$BTC rejected from $60k yet again.
And now we have a potential rising wedge forming, which could point to further downside.
We’ll see if we get a full retest of channel resistance, but this 4h pattern is one to watch.#Bitcoin pic.twitter.com/hyjOW2t7UP
— Justin Bennett (@JustinBennettFX) July 11, 2024

The main contributor to the negative sentiment in the market is news that the defunct crypto exchange Mt. Gox started repaying its creditors from July 5. Investors and traders fear the potential ramifications of up to $8.5 billion worth of BTC being sold into the market via these repayments.

There has also been selling pressure from wallets linked to the German Government. Approximately $935 million worth of BTC, or 16,254 Bitcoins, has been sent from these wallets to market makers and exchanges throughout the past 24 hours, according to on-chain data from Arkham Intelligence.

JPMorgan Analysts Anticipate A Market Rebound

Despite the negative sentiment, Wall Street firm JPMorgan said in a July 10 research note that the crypto market could rebound soon.

That’s because it sees downward pressure on the market easing by the end of this month. Selling pressure caused by creditors selling assets refunded by the defunct Mt. Gox crypto exchange and Gemini, as well as sales of seized crypto assets by the German government, will wane by the end of this month, it said.

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