Crypto: Bitcoin Returns To Historic Fear Levels As It Wipes Weekend Gains

Bitcoin plunged over $3,000 in two hours, while the Crypto Fear & Greed Index has slumped to historic lows again.

The Crypto Fear & Greed Index fell to its lowest levels on Monday as Bitcoin plunged more than 4% to $64,300, erasing its gains since Friday.

More than 136,000 traders were liquidated over the past 24 hours, with total liquidations sitting at $458 million, 92% of which were leveraged long positions, according to CoinGlass.

Bitcoin saw some gains over the weekend, tapping $68,600 on Saturday, but it now sits at support at the bottom of a range-bound channel that formed after its Feb. 6 wipeout to $60,000.

Bitcoin is now trading 48% below its October all-time high of $126,000 and 5.5% below its 2021 bull-market peak of $69,000.

Alternative.me’s Crypto Fear & Greed index, which measures overall market sentiment, has fallen back to 5 out of 100, indicating “extreme fear.”

It has only ever fallen this low three times since 2018 — when the index launched — including August 2019, June 2022, and earlier this month.

Related: Crypto sentiment hits extreme fear as Matrixport flags possible bottom

On-chain analytics provider Glassnode reported on Monday that the seven-day moving average for net realized losses for recent investors was still nearly $500 million per day, noting that they are still capitulating.

Meanwhile, analyst Michaël van de Poppe posted what he called a “phenomenal chart” on Saturday showing that the Sharpe Ratio for Bitcoin has fallen to -38.4, “which historically has marked ‘low risk’ accumulation zones.”

Source: CoinTelegraph