BTC and ETH See Sharp Decline: Fear Index in Markets is Decreasing

Bitcoin and Ethereum Experience Sharp Decline in the Crypto Market

The crypto market has started the day in red, led by Bitcoin (BTC) and Ethereum (ETH). The total cryptocurrency market capitalization has decreased by 3% to reach $3.4 trillion, while Bitcoin has fallen below the $105,000 mark and Ethereum has dipped below $3,500.

Market Sentiment at Extreme Fear Level

The decline in the crypto market has negatively impacted market sentiment. According to CoinMarketCap data, the Crypto Fear and Greed Index has halved compared to the previous day, dropping to 27 out of 100, indicating “Extreme Fear” in the crypto market.

Changes in Crypto Assets

Bitcoin saw a low of $105,540 and a high of $110,000 in a single day, and has declined by 3% over the last 24 hours to $103,900. Ethereum has also fallen by over 6% in the last 24 hours to the $3,400 level. As a result, the second most valuable asset in the market has dropped below the $3,500 mark for the first time since September.

Analysis and Future Expectations

The current level of crypto sentiment marks the lowest point in approximately seven months. Significant outflows from publicly traded Bitcoin funds have been recorded. According to SoSoValue data, Bitcoin exchange-traded funds (ETFs) have seen an outflow of $1.33 billion since October 29. This situation has increased investor concerns and also attracted attention as large investors like BlackRock have been selling.

An important development for investors is the shaping of predictions for November, as Bitcoin and Ethereum have fallen below critical levels. Crypto analyst Ash Crypto highlights that Bitcoin dropped from $71,000 to $66 in early November 2024, noting that a trend of risk aversion has begun in the market. However, significant 60% increases have also been observed in previous 45-day periods.

In Conclusion

Additionally, despite Powell's statements in October, the expectations for interest rate cuts and the favorable macro outlook are considered potential signs of recovery for the crypto markets.