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

Bitcoin and Ethereum Experience Sharp Decline in Cryptocurrency Market

The cryptocurrency market has started the day in the red, led by Bitcoin (BTC) and Ethereum (ETH). The total cryptocurrency market cap has decreased by 3%, falling to $3.4 trillion, while Bitcoin has dropped below $105,000 and Ethereum below $3,500.

Market Sentiment at Extreme Fear Level

The decline in the cryptocurrency market has negatively impacted market sentiment. According to CoinMarketCap data, the Crypto Fear and Greed Index has fallen by half compared to the previous day, down to 27 points out of 100, indicating "Extreme Fear" in the cryptocurrency market.

Changes in Crypto Assets

Bitcoin, after seeing a low of $105,540 and a high of $110,000 in one day, has declined by 3% in the last 24 hours, dropping to $103,900. Ethereum, on the other hand, has decreased more than 6% in the past 24 hours, falling to the $3,400 level. For this reason, the second most valuable asset in the market has fallen below $3,500 for the first time since September.

Analysis and Future Expectations

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

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

In Conclusion

Furthermore, despite Powell's statements in October, expectations for interest rate cuts and a positive macro outlook are being viewed as potential signs for a recovery in the cryptocurrency markets.