Bitcoin back to record fear levels as it wipes weekend gains

2 hours ago

Bitcoin plunged implicit $3,000 successful 2 hours, portion the Crypto Fear and Greed Index has slumped to historical lows again.

The Crypto Fear and Greed Index fell backmost to its lowest levels connected Monday arsenic Bitcoin plunged much than 4% connected the time to $64,300, giving backmost its gains since Friday.

More than 136,000 traders were liquidated implicit the past 24 hours, with full liquidations sitting astatine $458 million, 92% of which were leveraged agelong positions, according to CoinGlass.

Bitcoin saw immoderate gains implicit the weekend, tapping $68,600 connected Saturday, but it present sits astatine enactment astatine the bottommost of a range-bound transmission that formed aft its Feb. 6 wipeout to $60,000.

Bitcoin is present trading 48% little than its October all-time precocious of $126,000 and 5.5% beneath its highest level of $69,000 from the 2021 bull market.

Fear and Greed Index astatine historical lows

Alternative.me’s Crypto Fear and Greed index, which measures wide marketplace sentiment, has fallen backmost to 5 retired of 100, indicating “extreme fear.”

It has lone ever fallen this debased 3 times since 2018 — erstwhile the scale launched — including August 2019, June 2022, and earlier this month.

On-chain analytics supplier Glassnode reported connected Monday that the seven-day moving mean for nett realized losses for caller investors was inactive astir $500 cardinal per day, noting that they are inactive capitulating.

“While the strength has cooled, the broader authorities inactive signals a marketplace nether pressure, with participants successful the basal enactment signifier continuing to capitulate.”

Bitcoin Sharpe Ratio besides astatine humanities lows

Meanwhile, expert Michaël van de Poppe posted what helium called a “phenomenal chart” connected Saturday showing that the Sharpe Ratio for Bitcoin has fallen to -38.4, “which historically has marked ‘low risk’ accumulation zones.”

The ratio measures Bitcoin’s show comparative to the hazard taken, indicating however overmuch instrumentality an capitalist tin expect for each portion of risk.

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