Market Remains In “Extreme Fear” As Bitcoin Drops Below $30K
Bitcoin price continues to sink as fear looms. The crypto market has been in “Extreme Fear” for the longest stretch in a year. According to Arcane Research, this has persisted to the present. The Fear & Greed Index continues to show that market sentiments remain quite negative.
Extreme fear has loomed over the market for a month. Now it has dropped another point from a week ago to place the indicator at 19 as fear grows across the market. Bitcoin continues to decline in price as the market cap sees $80 billion wiped out in less than 24 hours.
Fear & Greed Index hit a low of 15 earlier in the week, but has not gone up four points to the current position. Regardless, the market is still in the midst of extreme fear.
Traditional markets are also reporting similar market state. The traditional market fear index currently sits at 17. Meaning this is not just a crypto market problem. Investors across the market remain wary of investment assets.
BTC Funding Rates Stay Down
According to the report, the past week has seen declining funding rates. Funding rates remain in the negative as bitcoin continues downwards movement. This also follows the futures premiums going down in this past week. Overall market sentiments continue to drive in the negative.
While the low funding rates may be negative, they present a bit of relief. According to the report, this shows that there isn’t an influx of over-leveraged bulls seeking to bet on current holding support. Indicating that cascading liquidation events are even less likely now than they were before.
Bitcoin has so far shown more bearish tenders. Short-term traders remain bearish as the price continues to plummet with no end in sight.
Weak On-Chain Activity
On-chain data analysis in the report shows that mining difficulty had fallen by 4.88 on Sunday. This was after it had declined by a record 28% on July 3rd.
But the block discovery rate for the week had reached 6.18 blocks per hour. This puts the block discovery rate back in its normal state. The block rate had previously fallen to 5.64 blocks per hour the previous week.
Bitcoin hash rate has also recovered as it seems miners are beginning to gain back their footing. The hash rate is now currently above 100 exahashes per second. Showing that miners who had been displaced due to China’s crackdown are now coming back online.
On-chain activity so far still remains week. Demand for block space and on-chain settlements has declined. Indicated by mempools clearing and falling transaction volumes.
