Bitcoin fell to $66,896.43 today, with investor sentiment increasingly shifting toward "extreme fear," suggesting the decline could continue. The Fear and Greed Index reached level 11, a level seen only a handful of times in the past. Bitcoin's decline has been ongoing for quite some time now—in mid-January, its price dropped to $92,000, and on February 1 fell to $80,000.
The Fear and Greed Index is a comprehensive sentiment indicator that measures investor emotions by analyzing a variety of market factors. It allows one to understand whether the market is driven by fear (low prices and overselling) or greed (high prices and overbought). Its value ranges from extreme fear (0) to extreme greed (100).
The sell-off primarily affected cryptocurrencies and metals, while other US stock markets showed resilience. Gold fell more than 1%, falling below $4900 per ounce, and silver fell more than 11%, falling below $79 per ounce. US stocks, on the other hand, rose slightly. The Invesco QQQ exchange-traded fund (ETF), which tracks the Nasdaq 100 index, rose 0,05%.
Bitcoin-related stocks continued to fall. Strategy, the largest publicly traded holder of the cryptocurrency, fell more than 5% and is trading 80% below its all-time high in November 2024. Other Bitcoin companies, including Strive and Nakamoto, fell around 6%. Cryptocurrency exchange Coinbase lost another 2% of its market value, while its competitor Bullish, owner of CoinDesk, fell 0,4%.
The situation with mining companies is mixed. IREN fell 3%, and Cipher Mining fell 2%, continuing yesterday's sharp decline of approximately 15% each. Shares of major mining companies with significant Bitcoin holdings, including Riot, MARA Holdings, and CleanSpark, fell approximately 3%.
The situation could change if the correlation with the iShares Expanded Tech Software ETF, which has risen slightly, continues. The valuation of such funds often reflects historical trends in cryptocurrency prices.
At the time of publication of this material, the Bitcoin rate had risen slightly to $67,383.84.
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Source: 3dnews.ru
