Fear and greed: Crypto market in trouble? Bitcoin’s plunge raises concerns

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Fear and Greed crypto index showed that the sentiment has turned to fear as major asset prices declined recently.

price has had a notable ripple effect across the cryptocurrency market. This decline has impacted market sentiment significantly, as evidenced by changes in theThis measure gauges the general sentiment among cryptocurrency investors by compiling data across various sources, including market volatility, social media sentiment, trends, and other relevant factors.A score of 30 falls in the “fear” category, suggesting that investors are concerned about potential downside risks.

When long positions liquidate on such a large scale, it indicates that many investors, who were betting on the price of cryptocurrencies to rise, have been forced to exit their positions.The smaller volume of short liquidations, over $62 million, showed that fewer traders betting against the market forcefully closed their positions.How Fear and Greed crypto could have shaped up

It indicates that pessimistic traders are being squeezed out, which can push prices upward and potentially shift sentiment towards greed if sustained.

 

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