Crypto in ‘Extreme Fear’ as Arthur Hayes Predicts Bitcoin Under $50K This Weekend

September 06, 2024 08:37 PM AEST | By Team Kalkine Media

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Crypto in ‘Extreme Fear’ as Arthur Hayes Predicts Bitcoin Under $50K This Weekend — Image source: shutterstock

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Crypto market sentiment has plunged into the "extreme fear" zone, triggered by a recent drop in Bitcoin’s price. The Crypto Fear & Greed Index which gauges market sentiment on a scale from 0 to 100, registered a score of 22 on September 6, indicating a state of "extreme fear." This marks a significant decrease from the previous day’s score of 29, which reflected "fear." It is the lowest sentiment score since August 8, when the index reached 20, and the first return to "extreme fear" since August 12.

Bitcoin's price fell to a low of $55,838, following a decline from over $58,000. This drop resulted in a reduction of approximately $29.7 billion in {Bitcoin} (BTC) market capitalization, according to Cointelegraph Markets Pro. As of the latest update, Bitcoin's price had slightly recovered to approximately $56,533.

Arthur Hayes, co-founder of BitMEX, has forecasted further declines, suggesting that Bitcoin’s price could potentially fall below $50,000 over the weekend. Hayes made this prediction in a September 6 post on X (formerly Twitter), indicating that he had taken a short position in anticipation of the further decline.

The slump in Bitcoin’s price has also negatively impacted other major cryptocurrencies. Ethereum dropped by 2.23%, Solana fell by 2.82%, and XRP decreased by 2.19%. This widespread decline resulted in $94.26 million worth of liquidations over the past 24 hours. The majority of these liquidations were related to long positions on Bitcoin, totaling approximately $71 million, with nearly $37 million of that amount coming from Bitcoin longs. Ethereum long positions also saw significant liquidations, totaling around $17 million.

The recent downturn in Bitcoin’s price and the broader cryptocurrency market comes amid ongoing concerns about the US economy and potential impacts on Federal Reserve policies. The recent jobs data released on September 5 did not meet economists’ expectations, fueling additional uncertainty in the market.

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