Latest information from Coindesk - a website specializing in the global cryptocurrency market - strong capital withdrawal from ETF funds and pressure to liquidate derivatives has caused market sentiment to be "extremely fearful".
Coindesk cited the view from the analysis company 10x Research that the sentiment of the cryptocurrency market has fallen into extreme pessimism. The "Fear & Greed Index" index fell to a record low below 5 points. The 21-day moving average (MA) of this index also fell to 10, a multi-year low.
The “fear and greed” index is an investor sentiment analysis tool specifically designed for the cryptocurrency market. It measures investor sentiment and emotions on a scale of 0 to 100, where 0 is extreme fear and 100 is extreme greed.
This year, periods of “extreme fear” with the index around 10-20 points have often preceded strong price increases. Conversely, “extreme greed” zones of 80-90 points signal that the market is overheated and about to correct.
The cryptocurrency market continues to be under strong selling pressure, with the price of bitcoin falling close to $80,000 at one point. Although the price later recovered to around $84,000/BTC, investors remain uneasy because they fear the decline will not stop.
Compared to the historical peak of 125,300 USD set on October 7, this currency has evaporated nearly 37%, wiping out all the growth results this year. Bitcoin market capitalization is now just over 1,600 billion USD, equivalent to nearly 890 billion USD in value blown away in less than 6 weeks.
BTC investor pessimism reaches its peak. (Photo: DT).
Who is selling heavily?
As bitcoin has fallen sharply, mid- and short-term investors are known to be leading the current sell-off. They have largely ended up losing money, which has kept the downward trend from being over.
A recent report by VanEck shows that the current bitcoin sell-off is being driven by medium-term investors. Over the past 30 days, selling pressure has been concentrated in wallets holding less than 5 years, while older wallets have largely maintained or increased their holdings.
Overall, after half a year, many tokens have moved from the 3-5 year investor group to the 6 month to 2 year group. This signals a shift from mid-term holders to new "players" in the market.
Many opinions say that capital withdrawal from ETF funds, profit-taking activities of long-term holding "whales" and escalating geopolitical tensions are the main factors pushing the market down.
Ryan McMillin, chief investment officer of Merkle Tree Capital (Australia), told Cointelegraph that the price drop was not due to a single cause, but rather a result of many factors combined.
According to him, on-chain data shows that long-term investors have started to take profits after the prolonged price increase, creating a significant selling pressure on the market. Along with that, “the negative macro foundation and declining liquidity make the price vulnerable to further declines”.
“When old bitcoins are released in the context of weak purchasing power and a much more difficult macro environment than half a year ago, the market will inevitably have a strong correction,” he said.
Source: https://dantri.com.vn/kinh-doanh/thi-truong-bitcoin-dang-bi-quan-cuc-do-20251124100159959.htm
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