- The losses of Bitcoin dragged crypto fear and greed index to a low of 5 months of ‘extreme fear’
- Sellers were activated by President Trump’s rates on Mexico and Canada.
On February 25, Bitcoin The crypto market led to $ 86.8k in the charts after a sharp fall. As expected, the Beerarish moving market sentiment, with the same to a low five months of ‘extreme fear’ at 25.
Source: alternative.me
According to cryptoquant facts37.4K BTC, worth more than $ 3.3 billion, were sent to exchange with loss, because holders feared in the short term that the dive could extend.
What drives the crypto sale?
The risk-off sentiment saw ETH and XRP-Dump by 10%, but BNB registered a limited decrease of 4%.
Solana was the worst hit. It throws 12% of its value and hardly held on to the $ 140 level press. In general, $ 1.5 billion in positions ($ 1.38 billion lungs) were liquidated in the last 24 hours, according to data from Coinglass.
Source: Coinmarketcap
Yet most traders have wondered what caused the enormous sale. According to the Crypto Options Trading Desk QCP Capital, the market refueled after President Trump had enforced the rates on Mexico and Canada.
Part of the company’s daily market update on his telegram group read”
“Market sentiment remains under pressure after Trump’s decision to implement rates in Canada and Mexico and to curb Chinese investments.”
The Handelsdesk added that the institutional demand from companies such as Micro Strategy could be limited in the future. It is not surprising that the weak question has been clear since last December.
According to Cryptoquant, the apparent demand for BTC became negative for the first time since last October. In addition to low liquidity conditions, these hubborn risks of BTC accelerated.
Source: Cryptuquant
In fact, some analysts, such as Arthur Hayes excellent That the low demand could drag BTC to $ 70k due to reduced BTC CME -Basis yield. He added that large funds could sell BTC if the proceeds fall further.
In the meantime, the recent BTC low point of $ 86k marked a marking of 20% of its record high of $ 109.5k. However, the range was not yet invalid, at the time of writing.
Worth to point out that a daily candlestick that closes close to reach and bullish order block (OB, Cyan) would effectively break the neutral market structure of 3 months.
Source: BTC/USDT, TradingView
