Bitcoin and Ethereum Crash: Today's Fear & Greed Index Drops to 26, Signaling 'Real and Proper Panic' in Crypto Markets

Today, there is also a collapse in the price of Bitcoin and Ethereum. Yesterday, the Fear&Greed index had plummeted to 34, which is in the zone of high fear

The price of Bitcoin and Ethereum both fell sharply on Friday, August 2, amid a broader sell-off in the crypto markets.

Bitcoin’s price dropped below $50,000 for the first time since mid-July, while Ethereum’s price fell below 0.042 BTC for the first time since April.

The sell-off was triggered by a sharp decline in the Fear&Greed index, which measures the sentiment of the crypto markets.

The index fell to 26 on Friday, indicating "extreme fear" among investors.

The last time the index was at such a low level was in November 2022, following the collapse of the crypto exchange FTX.

The sell-off was also exacerbated by forced liquidations of leveraged positions, which occur when an investor's虧損 reaches a certain threshold and their positions are automatically closed out by the exchange.

In the event of a sharp price decline, traders who are overleveraged may face forced liquidation of their positions.

According to data from Coinglass, BTC ロングポジションが記録的な規模で清算された。

Specifically, BTC ロングポジションの清算総額は過去24時間で約1億ドルに達し、先週金曜日の清算総額の2倍以上となった。

一方、清算されたショートポジションの総額は約2,400万ドルだった。

清算は主に価格が60,000ドルを下回ったときに行われ、価格が58,000ドル、53,000ドル、50,000ドルを下回ったときにも行われた。

価格が60,000ドルを下回ると、強制清算が発生する可能性が高い。

The price of Bitcoin and Ethereum recovered slightly on Saturday, but both remained below key technical levels.

Bitcoin’s price hovered around $52,000, while Ethereum’s price traded at about 0.043 BTC.

The broader crypto markets also saw red, with the total market capitalization falling below $2.2 trillion.

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