Market Sentiment Crumbles As Sell-Offs Drags Bitcoin To $33,000

The current market crash is no doubt one of the hardest to hit in recent times. Bitcoin as well as other digital assets have suffered massive dips as a result of the crash. For Bitcoin, the pioneer cryptocurrency has had more than 50% of its all-time high shaved off in the last two months. This has caused it to hit new six-month lows as its price crashes to $33,000 for the first time since the summer.

Market sentiment has since nosedived in accordance with the movement of the market. As investors become increasingly wary of the market, more so than it was during the crash in May, sentiment has skewed entirely into the negative. The Fear & Greed Index puts this into perspective with its current rating as it now sits at one-year lows, crashing to 11 on the scale.

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Fear & Greed Index Goes Haywire

The Fear & Greed Index has been consistently declining into the negative as bitcoin and others have continued to record massive fluctuations. Now, though, the index has gone completely berserk as it crashes into one of the lowest recorded points. On Sunday, the Fear & Greed Index hit a score of 11, completely registering sentiment in the negative as it dived into extreme fear.

The following day has not come with much good news as the Fear & Greed Index still shows that investors are very wary of the market. The index currently sits at 13 at the time of this writing, a mere 2 points higher than its weekend low of 11. Nevertheless, the Fear & Greed Index has now spent a week in extreme fear as last week concluded with the index in the same territory.

Fear & Greed Index goes into Extreme Fear

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Fear & Greed Index remains in extreme fear | Source: alternative.me

Sell-offs remain the order of the day with investors scrambling to save themselves from more losses. It looks to be what is the start of another stretched-out bear market, as the last time something like this occurred was in 2018. After this, the market did not recover for another two years. If history is anything to go by, then the downtrend may not be over, with some predicting the bottom to be as low as $10,000.

Bitcoin Liquidations Rack Up

Amidst the sell-offs and price crash has been massive liquidations. Bitcoin long traders have naturally borne the brunt of the recorded liquidations with hundreds of millions of dollars in longs liquidated in the space of 24 hours. BTC liquidations racked up to $390 million in a single day, while the 12-day chart looks even worse with more liquidations taking place.

Related Reading | Bitcoin Breaks $37,000, Why Downtrend To $29,000 Is Likely

In total, there have been over $283 million in bitcoin liquidated in the last 12 hours. Longs have made up 80.8% of all liquidations according to data from Coinglass. OKEx, Binance, and FTX maintain the lead for exchanges with most liquidations as the majority have occurred on these platforms.

Bitcoin price chart from TradingView.com

BTC recovers to $34k | Source: BTCUSD on TradingView.com

Bitcoin’s price continues to trend low, touching $33,000 in the early hours of Monday. Twitter is abuzz with talk of the bitcoin crash with #BitcoinCrash trending. The digital asset is now trading at $34,200, with indicators pointing towards further dips.

Featured image from Unfinished Success, charts from alternative.me and TradingView.com

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The Year In Review: An Emotional Rollercoaster For Crypto Investors

The crypto market this year saw some ups and downs that had market sentiment fluctuating widely. Investors had experienced a year like no other given the multiple bulls runs and subsequent crashes and dips that then plagued the market. For some, it was the best year after their portfolios lay in the red for the past three years, while for others, especially those who got in at the height of the bull rallies, it has been a brutal year.

Nonetheless, it has been a year packed with lessons for all investors. Moving from incredibly bullish to bearish has helped educate investors that it cannot always be dark, neither can it always be bright. In this report, we take a look at the sentiment movements in the year and how emotions have moved with the market.

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Crypto Fear & Greed Index Fluctuates

Entering into the year had investor sentiment at one of its highest. Right in the extreme greed territory, the increasingly positive outlook of investors would play out over the next couple of months in the market. For four months, market sentiment was in extreme greed, and faith in cryptocurrencies remained high. However, this would change not too long after.

The very first notable price crash in the crypto market had happened in May, which saw market sentiment plummet with it. After staying in the greed territory for so long, the sentiment was suddenly in fear and investors were wary of the market. This continued through most of the summer as market-wide dips continued to rock the market, in turn dragging sentiment more into the negative.

By spring, however, the market had once again begun to rally. Sentiment, slowly but surely, moved out of the fear territory and went into neutral, hovering between this and greed.

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Crypto fear & greed index records rollercoaster year

Fear & Greed Index fluctuates widely in 2021 | Source: Arcane Research

August would market the beginning of another stretch of positive sentiment as the market once again dived into greed territory. This was followed by rallying prices, with investor favorites hitting new all-time highs.

This would prove to not last long as sentiment once again derailed back into the negative following the September 7th market crash. The Fear & Greed Index would again trend low until another rally towards the end of September brought it back up again. This time around, the market sentiment would spend a considerable amount of time in the greed territory before reversing again.

Related Reading | Bullish Signal? Ethereum Market Dominance Sitting Above 20%

Investors who are mostly seasoned have used tools like the Fear & Greed Index to profit off the crypto market this year. So while others have been scared of putting money in the market, these investors have doubled down on their investments and have seen it pay off. Arcane Research predicts that this trend will continue into 2022 and will help investors spot “buy the dip” opportunities in the coming year.

Presently, the Fear & Greed Index is trending low at around 40, indicating that investors are fearful of the market.

Crypto total price chart from TradingView.com

Crypto total market cap crumbles to $2.2 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from Institute of Entrepreneurship Development, charts from Arcane Research and TradingView.com

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Crypto Market Drops Back Into ‘Extreme Fear’ As Prices Struggle

The crypto market has continued to struggle after running out of steam with its last rally. During the last lap of the year, the market as a whole is not doing too well, although prices of cryptocurrencies are way higher than they were this time last year. Nonetheless, there have been some interesting trends that have emerged with the market crash that has seen prices stagnate at this time.

The Fear & Greed Index has shown that market sentiment has gone into the extreme negative once again. With prices of top assets like bitcoin and ethereum trading below important support points, sentiment has fluctuated widely in the market but has mostly stayed in the negative. This time around, market sentiment has dropped low and landed in the ‘extreme fear’ territory.

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Crypto Market Basking In Fear

The crypto market has spent a good portion of the month of December in the fear territory. Market prices haven’t been the most favorable for the month and investors remain incredibly wary of getting into the market at such a time. Others have however seen this as a buying opportunity like in the case of MicroStrategy, which bought an additional 1,434 BTC bringing its total holdings to 122,480 BTC.

The aggregate for the month of November came out to neutral on the sentiment side of things after a tumultuous end to an otherwise wonderful beginning of the month. That has spilled into December as Christmas rolls around.

Chart showing Fear & Greed Index

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Market goes into extreme fear | Source: alternative.me

Yesterday the Fear & Greed Index had peaked at 29 on the chart, putting the market in the fear territory. This was up a bit from last week where the market spent long stretches in extreme fear. Today, market sentiment again rolled into the extreme fear territory with a low 23 on the chart.

The index being this low shows that there are low buying pressures in the market and high selling pressures. Sell-offs are still underway in various digital assets that have seen their prices dip into the red. As the market heads into the weekend which is usually characterized by low volatility, will the market be able to pull itself out of extreme greed?

Bitcoin, Ethereum Suffer Losses

Bitcoin had made a splash in the market when it had hit its new all-time high slightly above $69,000 at the beginning of November. This had sent the crypto market on what would be a memorable bull run as Ethereum came close to hitting the $5,000 mark not too long after. But this would only be short-lived as the downtrend had begun not too long after.

Related Reading | Crypto Bull Cathie Wood Says Ethereum Is More Undervalued Than Bitcoin

For Bitcoin, the digital asset had lost as much as $10,000 in a single day that sent it towards the low $40,000s. Ethereum on the other hand had held out for a while but succumbed to the downtrend in time.

Bitcoin is now trading well below $50,000 after failing to hold above this price point this week. Ethereum is now trading below $4,000, a crucial support point for the digital asset. At the time of writing, bitcoin is trading at $47,141 and ethereum is trading at $3,826.

Crypto total market cap chart from TradingView.com

Crypto total market cap at $2.16 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from Bitcoin News, chart from TradingView.com

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17% of Australians now own crypto, totaling $8B between them: Survey

One in six Australians now own cryptocurrency, with the total value of their holdings adding up to $8 billion, according to a recent survey. 

The full report of the Finder Consumer Sentiment Tracker was posted online on September 2. It is a monthly ongoing survey of 1000 nationally representative Australians conducted by Qualtrics.

The most popular cryptocurrency in the country remains Bitcoin, with 9% of Australians currently hodling it. Around 8% of Aussies indicated that they own Ethereum, 5% own Dogecoin, while Bitcoin Cash is held by 4% of the population, according to the survey.

Researchers said they were surprised to find that 35% of respondents believe that Bitcoin will eventually be transacted more widely than traditional currency — meaning that one in three Australians believe Bitcoin will take over from fiat currency by 2050.

The proportion of Bitcoin trubelievers grew to 52% among Gen Z respondents. Additionally, 50% of all respondents indicated that they believe Bitcoin is a legitimate investment.

Men were twice as likely as women (23% vs. 11%) to own crypto. However, the trends favor women, with the proportion of women owning crypto increasing from just 7% in January, while the proportion of men fell from 29%.

Of those who indicated that they owned cryptocurrency, the largest proportion said that they did so in order to diversify their portfolios (30%). One quarter (24%) of Aussie hodlers said they purchased crypto simply “because it’s going up.” This figure fell from 45% in January.

Around 49% of respondents aren’t interested in crypto at all, responding that “nothing would make me want to invest in cryptocurrency,” while 32% of crypto abstainers indicated that they would “rather buy shares or have money in savings.”

Overall, the biggest deterrent to buying crypto is it’s volatility and perceived risk. Surprisingly more men than women (50% to 37%) were reluctant to buy crypto for these reasons according to the survey.

Another significant barrier to entry for Australians is the difficulty in understanding how crypto works. 28% responded that they would invest in cryptocurrency if they understood how it all worked, while 18% said they would invest if they understood how to actually invest in it.

Related: Australia and Singapore conclude digital verification blockchain pilot

Finder’s research was highlighted earlier in the year when it reported that 56% of Australians believe Tesla CEO Elon Musk is the founder of Bitcoin.

The report also demonstrates the effect of global social media influencers on crypto sentiment. More than half of Australians (52%) tend to get news from social media platforms like Twitter, where many cryptocurrency market influencers can be found.