
Jakarta, Pintu News â The crypto market has recently experienced a severe shock with the fear index hitting an extreme low. The surprise tariff war between the US and China on October 10 has triggered a sharp drop in market sentiment, with Bitcoin plummeting from $126,000 to $98,000.
Not only did this wipe out more than $19 billion in leveraged trades, but it also triggered price drops in other digital assets such as Solana and Ripple , each of which fell more than 40% within hours.
Recent market data shows that the crypto fear and greed index has hit 10, a record low triggered by the news shock of the US-China tariff war. The sharp drop in Bitcoin (BTC) price has led to massive liquidation of leveraged trades.
As a result, the crypto order book became extremely thin as market makers withdrew liquidity to avoid further losses. The situation was exacerbated by the outflow of funds from ETFs that were previously flowing in, as well as weakening global demand for digital assets. Investors are now cautious and choosing to wait, reflecting the dominance of fear that has persisted over the past few weeks.
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Although the market is starting to stabilize with the crypto fear and greed index rising slightly to 21, it is still deep in the fear zone. Global searches on Google for keywords such as âcryptoâ and âBitcoinâ have returned to levels seen during the previous mid-cycle correction.
This indicates a decline in interest from retail investors. According to market traders, periods of low interest and high fear are often accumulation zones. This is when smart investors quietly build up their positions while the masses remain pessimistic. However, it remains to be seen if this will be enough to recover the market from the existing pressure.
Read also: Bitcoin Bull Run Still Long? Here are 3 Facts that Many Ignore
Despite the rising panic, analysts are divided. One crypto trader, KillaXBT, stated that Bitcoin (BTC) is still repeating the same pattern as after each weekâs latest FOMC. Bitcoin briefly rose above $95,000 before dropping about 5% and is now near $90,000.
He expects the next key move to occur around December 10-11, based on the latest FOMC data. While indices such as the Nasdaq, silver, and S&P 500 are all moving higher, Bitcoin (BTC) is moving in the opposite direction, down 3% today. This is the first time since 2014 that the crypto market has fallen while traditional assets have risen.
The decline was triggered by the shock of the US-China tariff war on October 10, which pushed Bitcoin (BTC) and other cryptocurrencies down sharply.
The index fell to 10 due to massive liquidation, liquidity withdrawal by market makers, and outflow of funds from ETFs.
Solana (SOL) and Ripple (XRP) saw drops of more than 40% in just a few hours after the market shock.
Google searches for âcryptoâ and âBitcoinâ dropped to low levels, reflecting weakening sentiment and investor caution.
Analysts remain divided, with some seeing it as a mid-cycle reset while others think the market is showing signs of structural weakness.
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*Disclaimer
This content aims to enrich readersâ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an assetâs past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
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