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

Bitcoin and Ethereum Experience Sharp Decline in Crypto Market

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

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 within a day; over the last 24 hours, it has lost 3% and fallen to $103,900. Ethereum, on the other hand, has dropped over 6% in the last 24 hours, reaching the $3,400 level. As a result, the second most valuable asset in the market has fallen below $3,500 for the first time since September.

Analysis and Forward-Looking Expectations

The current levels of crypto sentiment indicate the lowest levels in about seven months. Significant outflows from publicly traded Bitcoin funds have been recorded. According to SoSoValue data, Bitcoin exchange-traded funds (ETFs) have seen outflows of $1.33 billion since October 29. This situation raises concerns among market investors, with large investors like BlackRock also selling.

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

In Conclusion

Additionally, despite Powell’s announcements in October, expectations for interest rate cuts and the positive macro outlook are seen as potential signs of recovery for the crypto markets.