Bitcoin and the Crypto Market Have Left Behind a Challenging Week
This week has been quite turbulent for Bitcoin and the overall crypto market. After reaching around $60,000, Bitcoin experienced a price drop of approximately 5%. At the same time, significant outflows occurred from spot Bitcoin Exchange-Traded Funds (ETFs). This situation had a considerable impact on the decrease in Bitcoin’s price.
Arthur Hayes Opens Short Position on Bitcoin, Expecting a Sharp Decline!
According to information we obtained from Kriptokoin.com, despite the US markets being closed on Monday, significant withdrawals resumed shortly after. On Tuesday, there was a net outflow of $287.78 million from spot Bitcoin ETFs. This continued with a $37.29 million outflow on Wednesday and another $211.15 million outflow on Thursday. In total, there was a $536.22 million outflow from spot Bitcoin ETFs this week.
In light of these outflows, many industry leaders expressed their bearish predictions for Bitcoin. Arthur Hayes, co-founder of the BitMEX crypto exchange, announced that he opened a short position, predicting that Bitcoin would fall below the $50,000 level. Hayes stated: “BTC is heavy, I’m targeting below $50,000 this weekend. I’ve taken a reckless short position. Pray for my soul because I am a degen.” View on Twitter.
Famous Analyst Predicts Sharp Decline!
Similarly, experienced trader Peter Brandt predicted that Bitcoin (BTC) would decline to $46,000. Explaining this situation, Brandt said, “This is called an inverted expanding triangle or megaphone. Testing the lower boundary will be around $46,000. A significant push is needed to get this bull market back on track towards all-time highs for Bitcoin. Selling in this formation is stronger than buying,” and shared a supporting chart for his views.
The Market’s Eyes Will Be on the US NFP Report!
Today, the non-farm payroll report will be released in the US. This data is of great importance as it could affect the Federal Reserve’s interest rate decision. A weak employment report released last month caused instability in global markets, affecting cryptocurrencies as well. Avinash Shekhar, CEO of the crypto derivatives exchange Pi42, stated in his assessment with BeInCrypto, “The upcoming release of US payroll data is eagerly awaited by investors, as it could influence the potential size of the Fed’s rate cut this month. The volatility in the market reflects the uncertainty regarding this crucial economic indicator,” he noted.
Fear Dominates the Bitcoin and Altcoin Market!
As a result, the crypto market has fallen into the “extreme fear” zone, according to the Crypto Fear & Greed Index, which measures market sentiment. The index dropped to 22 on September 6, indicating an “extreme fear” situation. This represents a significant decline from the previous day’s labeled “fear” score of 29, and it marks the lowest level since reaching 20 on August 8.
Despite widespread negative sentiment, some investors are trying to identify potential opportunities. Quinten Francois, a well-known crypto investor, emphasized that the market sentiment is similar to when Bitcoin dropped to $16,000 in November 2022. Therefore, he advised investors to proceed with caution.
