Fear and Greed Index Plummets to Extreme Panic Levels

On August 6, the cryptocurrency Fear and Greed Index dropped to 17 points, a level last seen in July 2022.

The metric’s decline coincided with a sharp deterioration in market sentiment. On August 5, Bitcoin tested the $50,000 mark, with daily losses reaching 13%.

At the time of writing, the digital gold had recovered to $55,800.

According to Coinglass, positions worth $444.2 million were liquidated over the past day.

10x Research identified U.S. economic indicators as the main factor behind Bitcoin’s decline.

Earlier, ForkLog discussed with experts the reasons for the dump and explored the conditions under which high-capitalization coins might begin to recover. Read the details in the article.