In general, investor sensitivity in Bitcoin and the crypto market in general fell to the level of “extreme fear”. With Bitcoin’s fall below $ 90,000, the crypto fear and greed index has been the lowest level since June 2022.
Fear is increasing in the crypto market
The crypto fear and greed index showed that the worries in the market have grown by declining to 10 levels on February 26th. Lastly, this level was reached during the collapse of Three Arrows Capital (3ac), Terraform Labs and Celsius.
In the last 30 days, the price of Bitcoin has almost crashed and according to the data, it fell to $ 82.311. This harsh decline in investor sensitivity came after US President Donald Trump’s statements about trade tariffs. Trump announced that it would be applied to Canada and Mexico with a 25 %tax, while the European Union signaled to expand. This caused great fear in the market.
Large exits from Bitcoin and crypto funds
Uncertainty in the market has led to large outlets from Bitcoin investment funds. A total of $ 3 billion output in the last seven days was experienced. The biggest output came from Blackrock’s Ishares Bitcoin Trust fund with $ 420 million.
The fund exits accelerated on February 24, exceeding a total of $ 1.1 billion. Grayscale, Bitwise, Ark 21shares and Wisdomree, such as large funds, such as $ 10 to 60 million dollars took place. This withdrawal throughout the market reduced the total value of the crypto currency market by 2.7 %to 2.86 trillion dollars.
Analysts see the fall as an opportunity
Some analysts say investors should be careful during such panic periods. Young Ju, in a statement on his social media account, Bitcoin’s previous rise cycles have experienced corrections up to 30 %and can recover in the long run, he said.
On the other hand, Bitmex Founder Arthur Hayes said that the price of Bitcoin may fall further and said that the levels of $ 70,000 could be tested. Analysts emphasize that the support level of $ 74,000 is especially critical. The factors that will determine the direction of the market include ETF outputs and macroeconomic uncertainties.
