The Bitcoin price briefly dipped below $ 40,000 overnight. The Fear and Greed Index is now on “Extreme Fear”.
Bitcoin’s temporary downward slide hit a new low yesterday evening. At 11:19 p.m. Central European time, the price of the digital store of value slipped below 40,000 US dollars for the first time in six weeks – a decrease of around 8.9 percent compared to the previous trading day. At $ 39,876, the bulls finally beat back the bear attack for the time being, lifting the BTC rate to $ 42,033. The 24-hour performance could thus be significantly improved. Bitcoin was trading at $ 42,087 at the time of going to press with a loss of 1.5 percent.
The situation does not look much better with Ethereum (ETH) either. At the same time as Bitcoin, the second most valuable cryptocurrency also made a leap south to around 2,756 US dollars. However, the recovery was less than that of digital gold. Since the dip, Ethereum has only increased to 2,912 US dollars, but is still in the red with a total minus 4.4 percent.
A similar picture can be seen in the altcoin sector. For example, total market capitalization fell below the $ 2 trillion mark for the first time since August. In the ranking of the ten most valuable cryptocurrencies, only Dogecoin (DOGE) was able to generate a slight price gain of 0.22 percent after AMC – the largest cinema chain in the USA – is currently evaluating a possible integration of the Memecoin. So CEO Adam Aron asked on Twitter for the opinion of his followers. There was of course support from “Dogefather” Elon Musk.
Bitcoin Fear and Greed Index falls to “Extreme Fear”
The current downward trend in Bitcoin and Co. is also reflected in the mood on the crypto market. At least that’s what a look at the Bitcoin Fear & Greed Index shows. As of today, the mood of investors turned into “extreme fear”. For comparison: a month ago the state of mind was still “extreme greed”.
Opinions among crypto experts are also ambivalent. So means about “Mr.Whale” on Twitter that we are “now officially in the bear market”. Crypto legend Mike Novogratz stops at the US television station CNBC against it:
The $ 40,000 and $ 2,800 respectively are important resistances. As long as these hold, I am optimistic that the market is in good shape.
Mike Novogratz at CNBC
The violent mood swings at Bitcoin and Co. have been fueled since yesterday by the impending collapse of the Chinese real estate giant Evergrande. The company is sitting on a mountain of debt of 300 billion US dollars. Aid from Beijing is only likely if the consequences of the looming bankruptcy also infect other parts of the domestic economy. Some market watchers even fear a new “Lehman Brothers moment”.