Bitcoin Whales Shrinking the Fear and Greed Index in Extreme Fear

Bitcoin Whales Shrinking the Fear and Greed Index in Extreme Fear
  • Whales holding should have at least 1,000 coins and exchange inflows over 1.7 million.
  • The Fear & Greed Index dropped from 18 to 11 points.

On Sunday in a row Bitcoin (BTC) sank for the fourth consecutive day as investors struggled to shake off the bearish fear that began on Thursday.

Due to a 3 month peak in Bitcoin inflows to centralized exchanges (CEXs), the number of Bitcoin whales is shrinking constantly. The high Bitcoin inflows on CEX indicate that whales may be leaving the market by selling coins.

Glassnode (blockchain data provider) has introduced some negative indicators for the main cryptocurrency asset, that data shows a market exit for whales holding should have at least 1,000 coins and exchange inflows over 1.7 million coins highest since February.

Bearish Over The Cryptocurrency

The Bitcoin cryptocurrency has been bearish since the end of March. At the time, BTC was closer to $50,000, but it crashed and soon lost value rapidly. BTC lost more than $10,000 in April itself, closing around $40,000 for the month. Soon after, the cryptocurrency fell below $36,000, and the condition worsened in the last 24 hours when it dropped to about $34,000, its lowest level since late January.

The popular Fear and Greed Index has once again turned into an unfavorable high danger zone as bitcoin’s price continues to fall. The index hasn’t been this low since late January when the asset’s price fell to $34,000.

The Fear & Greed Index entered the “Extreme Fear” zone. The Index dropped from 18 to 11 points.

According to YCharts yesterday’s data, there are 233,892 daily transactions worth around $30 billion, which is average since January. However, the transactions do not appear as negative effects.

Caleb Franzen, an investment analyst, tweeted on Sunday that investors can expect the market to continue downward, based on his analysis he suggests we will remain short-term bearish. It seems worthwhile to expect greater suffering, he said at the end.

According to CoinMarketCap Bitcoin is currently trading at $33,515.00 USD, with a 24-hour trading volume of $38,960,903,723 USD. In the previous 24 hours, Bitcoin has dropped 3.04% at the time of writing.

An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.