Bitcoin’s price decline has taken the market to the ‘fear’ level, with its price briefly dropping below $56,000. Bitcoin could plunge as low as $50,000 this weekend, says BitMEX co-founder Arthur Hayes, with the cryptocurrency possibly declining by another 12%.
The Crypto Fear & Greed Index, which gauges market sentiment on a scale from 0 to 100, dropped to 22 on September 6, indicating a state of “extreme fear.” This is the lowest level since August 8, when the index hit 20. It’s the first time the index has entered the “extreme fear” zone since August 12.
In the past 24 hours, Bitcoin has lost 2.7% of its value, reaching a low of $55,838 before recovering slightly to $56,585. This decline wiped $29.7 billion from Bitcoin’s market cap, according to CoinMarketCap data.
Arthur Hayes shared his bearish outlook on X, stating, “$BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.” His prediction comes amid growing concerns about a slowing U.S. economy and disappointing jobs data, which have dampened market sentiment.
Other major cryptocurrencies also faced declines, with Ether down 2.23%, Solana falling 2.82%, and XRP decreasing by 2.19%. This market downturn resulted in $94.26 million in liquidations, including $36.71 million in Bitcoin longs and $17.36 million in Ethereum longs.
Bitcoin’s recent price drop has pushed market sentiment to extreme fear, with predictions of a possible plunge to $50,000 this weekend. The severe dip in sentiment reflects growing uncertainty and pessimism among investors.
Also Read: How the Upcoming NFP Report Could Affect Bitcoin’s Price
