Bitcoin (BTC) Market Sentiment Falls Back Into 'Extreme Fear' as BTC Briefly Drops Below $56K, Hayes Predicts It Could Sink Another 12% to Fall Under $50K Over the Weekend

The Crypto Fear & Greed Index — which measures market sentiment and trends to give a total possible score of 100 — hit a score of 22 on Sept. 6

Crypto market sentiment has slipped back into the “extreme fear” zone as Bitcoin's price briefly dipped below $56,000 on Monday, with BitMEX co-founder Arthur Hayes predicting that BTC could sink another 12% to fall under $50,000 over the weekend.

The Crypto Fear & Greed Index, which measures market sentiment and trends on a scale of 0 to 100, indicating extreme fear and greed, respectively, hit a score of 22 on Monday, Sept. 6. It marks a seven-point drop from the previous day, which saw market sentiment pegged at “fear.”

This is the lowest score and price that the index has seen since hitting 20 on Aug. 8 and the first time it has re-entered the “extreme fear” zone since Aug. 12, when the index hit 25.

Crypto market sentiment has swung wildly between fearful and greedy since June. Source: alternative.me

Bitcoin is down by 2.7% over the past 24 hours, trading at an average price of $56,362, hitting a low of $55,838 after falling from above $58,000, shedding $29.7 billion from its market capitalization, according to data from Cointelegraph Markets Pro.

BTC

$56,362

It has since recovered slightly from its lows to trade at an average price of $56,533.

“BTC is heavy,” said Hayes, the former head honcho of crypto exchange BitMEX, in a Sept. 6 X post, adding that he is “gunning for sub $50k this weekend. I took a cheeky short.”

Source: Arthur Hayes

Meanwhile, Bitcoin has struggled to gain momentum amid concerns over a slowing U.S. economy.

Bitcoin fell on Monday as new jobs data for the United States fell short of economists' expectations. Source: Cointelegraph Markets Pro

Jobs data for the U.S. on Sept. 5 fell short of economists' expectations, further stoking concerns about an anticipated interest rate cut by the Federal Reserve.

Related: Bitcoin transactions down 30% in 6 months as BTC price sparks ‘disinterest'

Bitcoin's 24-hour price dip also dragged down the price of other major cryptocurrencies on Monday, with Ether (ETH) down by 2.23%, Solana (SOL) down by 2.82% and XRP (XRP) down by 2.19%.

ETH

$2,377

SOL

$130

XRP

$0.54

The price dips led to $94.26 million in liquidations over the past day, with the majority being long positions, according to data from CoinGlass.

CoinGlass shows that over half of the liquidations were for long positions in Bitcoin and Ether.

Of the total long positions that were liquidated, which amounted to just over $71 million, nearly 40% were Bitcoin long positions, totaling $36.71 million. This was followed by Ether long positions, which saw $17.36 million in liquidations.

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