Bitcoin\'s Price Falls Short of $60,000 Again, Sparking Investor Anxiety as Crypto Fear & Greed Index Plunges to \"Extreme Fear\"

An indication that follows market sentiment on cryptocurrency and Bitcoin, the Crypto Fear & Greed Index, has hit "extreme fear," its lowest point since January 2023.

The Crypto Fear & Greed Index has hit “extreme fear,” its lowest level since January 2023, as Bitcoin failed to hold above $60,000 for the second time.

Bitcoin Price Rejections at $60,000

The Crypto Fear & Greed Index, an indicator that tracks market sentiment on cryptocurrency and Bitcoin, has hit “extreme fear,” its lowest point since January 2023.

The score dropped as Bitcoin price failed to clear the $60,000 resistance level for the second time in as many days, Cointelegraph reports.

Highlighting Bitcoin’s price level rejection at $60,000 “yet again,” Justin Bennett, a crypto and FX trader with 111,000 followers on X, noted the potential creation of a “rising wedge,” indicating further downside in the coming days.

Bitcoin Price Volatility Sparks Investor Anxiety

Bitcoin surged to $59,485 before crashing back down to $57,000 in the twelve hours following July 10. On July 11, Bitcoin price briefly touched $59,529 but failed to hold the level.

At the time of writing, Bitcoin trades at $57,499, down 23% from its all-time high on March 14.

The bearish sentiment comes amid reports that Mt. Gox began repaying its creditors on July 5, potentially releasing up to $8.5 billion in Bitcoin onto the market.

Large Bitcoin Sales Impacting Market Trend

The German government’s large Bitcoin sales, with 16,254 BTC sent to market makers and exchanges—totaling $935 million at current prices—according to Arkham Intelligence data, have contributed to the downward price action.

The index assigns a ten percent weight to Bitcoin’s dominance, a twenty-five percent weight to trading volume, and a ten percent weight to trends in the cryptocurrency industry. Previously, the index also included polls on the market, but these are no longer used.

The index score has been declining since reaching 90 “extreme greed” on March 5, when Bitcoin price cleared its previous all-time high of $69,000, set in November 2021.

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