Market Sentiment Takes a Nose Dive
The Crypto Fear and Greed Index has recently dipped into the “fear” territory, a sentiment level not experienced since the tumultuous days of early March. For those keeping score, this occurred right after the scare of Circle’s USD Coin (USDC) momentarily losing its dollar peg. Talk about a rollercoaster ride in the crypto world!
SEC Strikes Again
The catalyst for the anxiety? The United States Securities and Exchange Commission (SEC) just leaped into action, filing a lawsuit against Binance, its U.S. operations, and its CEO, the one and only Changpeng Zhao. The SEC has laid down a staggering 13 charges, claiming that Binance operated illegally by not registering as a securities exchange. Sounds like a plot twist from a financial thriller, doesn’t it?
How the Index Works
The Fear and Greed Index isn’t just some random number; it’s a synthesis of numerous indicators that reflect market sentiment. By combining price volatility, trading volume, momentum, and even social media trends, this index gives investors a gauge on whether the market is feeling positive or negative towards Bitcoin and its pals.
The Price Plunge
As expected, the SEC’s actions have sent shockwaves through the market. Major crypto assets like Bitcoin and Ethereum have taken a significant hit, with Bitcoin down 4.1% and Ether dropping 3.1% in just 24 hours. Even the altcoins are feeling the burn — Cardano’s price has plummeted 6.4%, while Solana is down 7.4%. Talk about a crypto hangover!
Liquidations Everywhere
And if you thought traders were going to sit on their hands during this chaos, think again! Over 280 million dollars worth of liquidations occurred since the lawsuit announcement. Naturally, those daring souls who loaded up on “long” positions, betting that prices would rise, bore the brunt of this volatility — accounting for a whopping 92% of the liquidations. Guess it’s safe to say they’re not feeling too optimistic right now!
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