F&G Indicator Shows Bitcoin Fears Are Rising Today

Bitcoin (BTC) is in a precarious place right now as it has dropped to $60,900 (BTC/USD). The Fear and Greed Index is showing increased fear related to Bitcoin investments.

That index measures a number of factors that relate to Bitcoin investments and then gives a simple reading on the level of fear or greed that the market is demonstrating. Today, the fear level is elevated, particularly when compared to yesterday’s reading. A reading of 50 is neutral, and anything below that reads as fear. Today, the indicator jumped from a neutral position of 49 to a reading of 39, which indicates increased fear.

Bitcoin is now down 1.87% from yesterday and has only gained 0.94% over the last seven days. In other words, it has lost much of its recent gains and is headed lower at a steady pace. If the price falls below $60K, that could be devastating for the crypto coin and its many investors. A drop to that level could further decrease investor confidence in the coin and cause many Bitcoin holders to sell off their coins.

There Is Hope

Bitcoin may be bearish at the moment, but there is some indication that it could shoot back up in the near future. Global liquidity levels indicate how easy it is to make financial transactions internationally, and those trends are improving in Bitcoin’s favor. We expect Bitcoin to become easier to trade and less regulated overall, but before then, the price may continue to dip.

Analyst Cole Garner says that Capitulation is coming before the price spike. He says liquidity is declining at the moment and may continue to do so for a short while longer, leading to increased selling pressure for Bitcoin investors.

On the upside, incoming interest rate cuts from the Federal Reserve could boost Bitcoin’s price point. We may see the next cut as early as November.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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